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Sharp FX Moves Next Few Days; Further GBP Downside - Goldman Sachs
Given the potential global ramifications of the UK vote and its effect on central banks’ policies, we also place our FX forecasts under review. We will reassess our medium-term views on G10 FX as our economists revise their economic and policy outlook for major developed markets. G10 currency moves are likely to be sharp over the next few days, after sharp moves overnight. Even though net short positions in GBP were still sizeable ahead of the referendum, they had been reduced in the past week as investors became more confident that a 'Remain' vote was more likely than not. We expect both Sterling and the Euro ... (full story)
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