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Thursday 30 June 2016

Risk appetites increase after Brexit

The headlines are full of comments about the fact that, despite the outcome of the referendum, there will not be a real Brexit, and the events in Brussels are taking a serious turn. The resigning Prime Minister David Cameron said that there is no turning back, and German Chancellor Angela Merkel emphasized, that now is not the right time to indulge in wishful thinking, but to become more aware of the reality.
The market behaved not quite adequately: S&P 500 futures rushed up to the first line of the Fibonacci correction - an impressive movement of more than 50 points from the lows, which, however, was preceded by a drop of more than 130 points.
It should be noted that the dynamics of the currencies and especially the securities with fixed income was much more restrained. In Asia is talking about incentives, the head of the European Central Bank Mario Draghi yesterday announced a new approach to monetary easing.
The more of these expectations - and what is more important, the faith in them - the stronger is the upward pressure on the dollar. The more markets are worried about how the world will be going after Brexit and worried about the effectiveness of policy-making, the stronger the dollar would be.


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