Last Thursday night, a sudden drop in an illiquid market between the US close and the Asian open sent the British Pound-US Dollar cross (GBP/USD) down to new post-Brexit lows.  After breaking below 1.20, the pound hit levels not seen since 1985.  While the pound quickly regained much of its initial decline, it has continued to trade lower over the last two days and is now considerably closer to its ‘flash crash’ low than it is to last Thursday’s regular session close.  We would also note that while the pound dropped 8.1% in the day after the surprise Brexit vote results, it has fallen more than that (11.3%) since then.  That puts the total decline for the pound since Brexit at 18.4%.  Remember, this is the currency of what is (or what was) one of the five largest economies in the world.

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