Article by ForexTime
A Brexit vote caused turmoil in the markets this morning and sterling tumbled to its lowest in over 30 years.
GBPUSD dropped fast as the Leave camp started maintaining a lead in the vote count and the pair touched as low as $1.3224, the lowest since 1985, the biggest on record.
Gold had its biggest rally since 2008 and rose to $1358.20.
The Leave vote breaks Britain’s 43-year membership of the EU. It is a historic event that has rattled markets across the globe as uncertainty looms.
US Treasury yield falling below 1.50 per cent, the lowest level since 2012.
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US stock-index futures fell more than 5 per cent while UK FTSE futures were down nearly 9 per cent. Shares in Japan declined more than 8 per cent as the yen appreciated sharply against the pound and dollar. The pound was down about 14 per cent against the Japanese currency.
The question is what will be Britain do now after Brexit?
The Bank of England’s view is that leaving the EU will damage growth and risk pushing the country into recession. The BoE’s main aim is to maintain stability.
At time of writing, the Leave campaign is leading with about 52 percent of the votes so far against Remain’s about 48 percent — but all the votes have not been counted yet.
Article by ForexTime
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