Braying at Brexit

So we have the British voting Thursday about whether to leave the EU through Brexit.

Polls and bookies have all provided their odds on the vote with a wide swath of probable outcomes.

My take is it is hard to get people to come out and vote for the status quo. Brexit supporters are more likely to vote than those Braying voters. That’s human nature.

That said, this morning, while the vote goes on, the dollar is getting smacked around, which of course has futures soaring in equities, oil and sell off in bonds.

It is far too early to talk about what a Brexit win might mean to the markets, but the real movement would be in the currency pits. The euro and pound sterling would be weaker against a rising dollar all of which would play havoc on commodities like oil and precious metals.

Before US markets open on Friday, we should have the results, however I believe we will see a pullback in the market as the US nears its 4PM close on Thursday if it’s too close to call.  As I write this Thursday morning in the US, pre-market trading in Europe is all green on the screen with the London index up over 1.5%.

So hold on, it could be a bumpy ride.

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One thought on “Braying at Brexit

  1. Pingback: Brexit, stage right | GRAY'S ECONOMY

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