The British pound continued to slide against the U.S. dollar and the yen moved higher in early Asian trading on Wednesday amid the continuing fallout from the U.K.’s vote last month to leave the European Union, while China’s authorities guided the yuan to its weakest level in almost six years. The U.K. currency, also known as sterling, fell 1.4% to 1.2837 and is currently trading at the lowest level in 31 years.
Brexit was a major shock to the global financial market and the global economy. The full impact is still to unfold, as the exiting procedure could be complicated and could take multi-year negotiations. In our assessment, the near-term economic impact of Brexit on China is likely to be limited, but it could have important implications on China’s exchange rate policy operation, the strategy in capital account liberalization, and monetary policy operation.
The British pound surged on Monday, climbing by as much as 2.18% against the dollar, after an opinion poll over the weekend suggested the U.K. was leaning toward voting to stay in the European Union in this Thursday’s referendum. Sterling was trading at $1.462 at 0930 GMT, setting the pound on course for its strongest one-day rally since 2009 and the financial crisis.
A gauge of home-builder sentiment rose in June, a sign of solid growth in the nation’s housing market. The National Association of Home Builders housing market index rose to a seasonally adjusted level of 60 in June, the trade group said Thursday, up from 58 in May and the highest reading since January. A reading over 50 means most builders generally see conditions in the single-family housing market as positive.
Although the clouds are still let the sun in the selective Spanish stock market, there are still some burn cartridges before lowering the stock in our investment hell called talk the great primary bear trend which we still have in mind from 2008-2012.Many are still injured from that average downward cycle of domestic firms, other trend followers, whether they were working, they made their grand August from 2012 to 2015 and now means we’re still correcting the excesses of these very fertile years.
Although it appears that all European indexes carry the same direction, if we compare the figures and technical aspects there are notable differences. This week investors expect rain in May as the appearance of Mr. Draghi in one of his last appearances in 2015, most are genetically bullish as most investors or market speculators and therefore expect to make up its annual results with that appearance.