A CLASSICAL risk-off move emerged during the week with equities, the British pound (GBP) and commodities selling-off; while the US dollar and other safe haven currencies, gold and volatility rebounded due to the complexity and global uncertainty.
Sterling touched the new low of 1.2798 against the US dollar as three of the UK’s largest real estate funds have frozen almost US$12bil of assets as they don’t have enough cash to immediately repay investors. In its bi-annual financial stability report, the Bank of England (BoE) warned that the current outlook for UK financial stability is grim due to Brexit. BoE governor Carney hinted that the central bank would launch more stimulus later in the summer.