Pound Plunges to 30-Year Low on Brexit Vote

The transcript discusses the unexpected market reactions to overnight events, focusing on the pound's dramatic turnaround and the implications for forecasts. It highlights the risks to the UK economy, including a potential rate cut by the Bank of England. The euro's outlook is also revised due to political risks in the EU. The yen's role as a safe haven currency is examined, with potential fiscal and monetary policy responses in Japan. The discussion concludes with an analysis of market volatility and structure, emphasizing the importance of the volatility trade in current conditions.

What is the current sentiment regarding the euro dollar outlook?

How does the ECB's commitment to purchasing peripheral debt affect market spreads?

What is the anticipated impact of the Bank of Japan's policy on the yen?