EUR/USD lost 2.50% as UK voted for Brexit. Global markets shrank.

EUR/USD shrank during the Asian session after Britain surprised the world by voting for Brexit. As of 3:00 AM EDT the pair was trading at 1.1142, which is 2.50% lower than the previous close.

Global markets were shocked after UK voted for leaving the EU. Though the effect on Asian stocks was not as harsh as on European once, it still moved the stocks significantly lower. Below is presented the performance of major indices:

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  • Shanghai Composite closed at 2,854.29, down 1.30%.
  • Nikkei 225 plunged 7.92% finishing at 14,952.02.
  • Hang Seng closed at 2.92%, down 20,259.13.
  • S&P/ASX 200 lost 3.17% finishing at 5,113.20.
  • India’s Sensex was trading at 26,261.19 as of 1:50 PM IST, which represents 2.74% decline from the previous close.

Financial markets were stunned after unexpected result of the UK referendum and UK Prime Minister David Cameron’s announcement of stepping down.

“It’s an extraordinary move for financial markets and also for democracy. The market is pricing interest rate cuts from the big central banks and we assume there will be a global liquidity add from them in the next few hours” said Richard Benson from Millennium Global.


Japan’s Finance Minister Taro Aso announced today that they will respond to this extreme changes, indicating a willingness to intervene to boost the yen strength.

“I’m extremely concerned about the risk (Brexit) has on the global economy, financial and currency markets. It is extremely important to ensure growth in the global economy, as well as maintaining currency and financial stability” said Aso.

Oil prices sharply dropped during Asian hours today. As of 4:13 AM EDT the WTI Crude was trading at 48.15 USD/bbl down 3.91% and Brent Crude at 48.94 USD/bbl, which is 3.89% lower than the previous close.


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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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