Brexit puts fintech and high-frequency trading firms in FX winners' circle FX banks in London traditionally did very well during periods of increased volatility. Today however, with regulations crimping the amount of risk they can run and increased capital costs applied to holding those risks, banks are less likely to garner outsized gains. In an environment of increased volatility, banks tended to eventually widen their spreads and capture ...
Brexit poses another problem for central banks struggling to combat low productivity and high debt levels on the path to growth and armed with narrow policy options. How does Brexit affect them, how might they respond and what are they likely to do? Bank of England "Some believe rates could be cut as early as next week, however others think the BoE will wait." US Federal Reserve "The US Federal Reserve began ...
It will take years for the full ramifications of the Brexit to unfold. In the meantime, here are the five most important things you need to know about this historic decision. 1. The stock market is reeling, but no one yet knows what the ultimate impact will be. 2. The British pound is getting hammered, which is good for vacationers but could have a longer-term effect on trade. 3. Banks and ratings agencies are lowering their ...
In the meanwhile, don’t expect the market to settle down in the near-term, or really any time soon. What this means is that recent trends are likely to persist; it’s too early to catch the falling knife or attempt to be a hero. One such way to gain an edge is to monitor retail crowd positioning (analogous to commercial hedgers in the futures market), as the crowd has consistently been on the wrong side of these recent big moves. The fact that the retail ...
Great Britain voted to leave the European Union. Markets yesterday bet they would stay, and now the fallout is great. Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management: "With last night’s result, that’s certainly unwinding. It caught the consensus on the wrong side yet again. Complacency had crept back into the markets."Bob Stovall, U.S. equity strategist at S&P Global Market Intelligence: "Falling prices will ...
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