Cable Crashes To 7 Year Lows As Brexit Battle Begins
With the UK's referendum on EU membership due in four months, it appears the market is gravely concerned about the possibility of Brexit. Despite the unleashing of Project Fear (both military and corporate fearmongery), cable (GBPUSD) has crashed 2.3% (the most in 7 years) to its lowest in 7 years, and both FX volatility and credit risk Brexit indicators are soaring to record highs.
Just as we warned, Friday's dubious gains have evaporated and cable is crashing to 7 years lows...
As Deutsche Bank's Jim Reid notes,