Brexit Vote Generates Extreme Moves from Pound, Dollar, Markets

Talking Points

• The United Kingdom voted to secede from the European Union
• GBP/USD, GBP/JPY, and Euro Stoxx responded with record-breaking declines
• USD/JPY, S&P500, FTSE100, Nikkei225, VIX, Gold and USD see extreme moves

Having trouble trading in such volatile market conditions? This may be why.

The United Kingdom decided through referendum to separate from the European Union on June 23rd. This unprecedented event resulted in extreme market reactions across the board. British Pound crosses, such as GBP/USD and GBP/JPY, experienced record-breaking moves and ranges. Meanwhile, stock indexes such as the Nikkei 225 index, saw daily changes and ranges at scales not seen in years. The charts below show just how much a scar the “Brexit” vote left on the markets in just one day.

GBP/USD

06/24/2016: 8.1 percent decline, largest on record. 12.0 percent range, widest daily range on record.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

GBP/JPY

06/24/2016: 11.4 percent decline, largest on record. 17.0 percent range, widest daily range on record.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

USD/JPY

06/24/2016: 3.7% decline, largest since October 1998. 7.4 percent range, biggest range since October 1998.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

S&P 500 Index

06/24/2016: 3.6 percent decline, largest since August 2015. 3.4 percent range, widest daily range since January.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

FTSE 100 Index

06/24/2016: 3.1 percent decline, largest since January. 8.7 percent range, widest daily range since October 2008.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Euro Stoxx 50 Index

06/24/2016: 8.6 percent decline, largest on record. 9.7 percent range, widest daily range since October 2008.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Nikkei 225 Index

06/24/2016: 7.9 percent decline, largest since March 2011. 9.4 percent range, widest daily range since March 2011.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

VIX Index

06/24/2016: 47 percent gain, largest since August 2011. 39.2 percent range, widest daily range since August 2015.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Gold

06/24/2016: 4.9 percent gain, largest since December 2008. 8.6 percent range, widest daily range since April 2013.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

US Dollar Index(ICE)

06/24/2016: 2.1 percent gain, largest since December 2008. 3.2 percent range, widest daily range since March 2009.

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg

Chart created by Chief Currency Strategist John Kicklighter, data pulled from Bloomberg