USD/CAD Loonie Plummets as Brexit About to Become Reality

Canadian dollar plummets as Brexit almost a reality

The USD/CAD is headed to break the 1.31 level as the Brexit outcome nears a reality. Betting odds and investor sentiment were caught wrong footed as this time the polls were near the pulse of the electorate.

Gold surges as Brexit almost a reality

Gold and other safe haven assets have risen after risk aversion has been triggered by the almost certain victory of the Leave camp. The GBP is at 30 year lows and there are major shockwaves around the world as markets begin to price in the new reality. Uncertainty on what the next steps are for the markets after the UK has voted to leave the European Union.

The historic referendum brought to the surface the deep tensions that have divided the British people and have now come to a democratic decision to reclaim their sovereignty by leaving the European Union.

Central banks around the world will be on alert as the Leave camp are closer to a win. The Bank of Japan has already emailed plans for extending swap lines to provide liquidity and keep the JPY from rising as investors covet the currency as a safe haven.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza