We begin by revisiting the situation in the UK, starting with some market developments.
1. The British pound took another hit Monday morning, reaching a multi-decade low. The currency was recovering slightly as of early Tuesday morning. We are in uncharted territory.
To put this dislocation in perspective here is Friday’s GBP move compared to other markets.
2. The FTSE 250 index, which has less international exposure than the FTSE 100 (and thus more exposed to the UK economy), got smoked.
3. We saw a spectacular selloff in Barclays Bank shares – 2 days in a row of 17%+ declines. RBS shares didn’t do much better. Some view this as a buying opportunity.
4. The 10yr gilts yield hit a record low falling below 1% for the first time.
Next, let’s take a look at a few headlines.
1. Central bankers are nervous.
2. Scotland’s leadership is rather upset with the EU Referendum outcome.NFTRH Premium for your 50-70 page weekly report (don't worry, lots of graphical content!), interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com and Biiwii.com. Also, you can follow via Twitter @BiiwiiNFTRH, StockTwits, RSS or sign up to receive posts directly by email (right sidebar).