Currency Market Trend Analysis: July 5, 2016
GBP - Great British Pound
After the United Kingdom officially decided to leave the EU on June 24, the pound hit its lowest point with a rate against the US dollar at 1.3641. Falling to a record low the country has not seen in over 30 years.
In the wake of Brexit, the Bank of England has put together an FAQ list that will answer all of your questions regarding the EU referendum.
Mark Carney, Governor of the Bank of England said this past week, “There will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold.”
CNY - Chinese Yuan
The Brexit has also had an effect on the Chinese yuan leaving many in suspense on their currency. As the world seems to be coming to an end after the referendum, many are looking to safe havens such as gold or U.S. dollars.
"Financial markets, for their part, appear to be tethered more closely than ever to global events, and the real economy appears to dance to the tune of global financial developments, rather than the other way round," said Hyun Song Shin, head of research at the Bank for International Settlements in a recent speech.
Another major devaluation of the yuan might be in the works as we saw happen in August of last year. In the meantime, the yuan has declined against the U.S. dollar over the last week quite substantially.
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