The calm is over. FX markets are open and Cable is currently down another 170 pips, testing 1.3500 once again. USDJPY is also sliding back below 102.00 as the world awaits China's reaction with its official peg as offshore Yuan plunged on Friday…
Cable testing towards that 1.34 handle…
For those wondering how far it could go -Options markets are suggesting a 1.24 to 1.46 range over the next 3 months…
Notice the difference between now (above) and the options implied distribution from Thursday (pre-Brexit) below…
And USDJPY back under 102…
Remember, China had shut before all this carnage had happened…
Will PBOC devalue The Yuan fix and escalate global turmoil further?
Of course – expectations are that central bankers will have to do something soon, but that means Brexit fears will be assuaged and will only encourage further revolution. They key is to crush Cable (see "told you so" to the 'ignorant Brits' who didn't listen to their masters) but save the rest of the world… good luck with that.
Charts: Bloomberg
The post Currency Carnage Continues: Cable, USDJPY Tumble As FX Markets Open appeared first on crude-oil.top.