The UK voted out with the pound crashing and the euro following. What’s next? Here are opinins from two banks. Here is their view, courtesy of eFXnews: Brexit Wins: GBP/USD Towards 1.20-1.25, EUR/USD Towards 1.06 – SocGen We continue to look for GBP/USD to trade around a 1.30-1.35 range for now (i.e. a little lower than here) and eventually, towards 1.20-1.25. EUR/GBP will rise further and indeed has already risen faster than our initial estimates, but we don’t expect a move to 0.90 (from 0.83 now). The yen has gained across the board and is the only major currency to have risen against the US dollar, which has rallied by over 2 ½% on a trade weighted basis. But concern about the economic fall-out in Europe is likely to see the Euro fall further in the weeks ahead too – it’s actually held up rather better than I for one expected but a drop to 1.06 in EUR/USD seems likely. Political fallout has already seen Scandinavian and CEE currencies fall on concerns about what this means for the EU and it’s far too early to fade those move. Brexit Wins: GBP/USD Towards 1.30 – BNPP We view that as the UK votes to exit the EU, four factors are set to weigh on the GBP: uncertainty; financial market stress; foreign direct investment (FDI); and other capital flows. We expect that GBPUSD is likely to decline as low as 1.30, while the Q3 ’16 and Q4’16 forecasts have been lowered to 1.35 and 1.38 respectively. EURGBP is forecast at 0.82 and 0.80 over these horizons. The traditional safe havens, the JPY and CHF, will probably continue to strengthen. Commenting on the referendum result outside of 10 Downing Street during London morning, Prime minister David Cameron said that he will continue as premier for the next three months, after which he will resign. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forget about Fed hikes – rate cut in September? Yohay Elam 6 years The UK voted out with the pound crashing and the euro following. What's next? Here are opinins from two banks. Here is their view, courtesy of eFXnews: Brexit Wins: GBP/USD Towards 1.20-1.25, EUR/USD Towards 1.06 - SocGen We continue to look for GBP/USD to trade around a 1.30-1.35 range for now (i.e. a little lower than here) and eventually, towards 1.20-1.25. EUR/GBP will rise further and indeed has already risen faster than our initial estimates, but we don't expect a move to 0.90 (from 0.83 now). The yen has gained across the board and is the only major currency to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
