The June 23 referendum had given markets something to talk about for months leading up to the event. Some bold predictions were made ahead of the event, essentially calling for a collapse of the British Pound in the event the exit materialized.

The weekly open last week, saw a continuation of risk sentiment and volatility, but dissipated quickly. The commodity currencies have already fallen back into normal ranges, The EUR/USD volatility is near pre-Brexit levels, while the GBP/USD remains at a slightly elevated volatility level, fears have certainly subsided. The USD/JPY has shifted from one extreme to another, the pair managed to gain only 24 pips in the past week, where most instruments were seen recovering against their Brexit directional bias.

At this point, markets will need to hear from the central banks to see how they plan on moving forward. Most of the banks are scheduled to report near the end of the month, which suggests we may get our first taste of summer trading as the week starts out with the Independence Day bank holiday in US.
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