The Brexit hangover kept markets guessing over the weekend – with some voters expressing what is being called ‘Regretsit’ after discovering that their joke votes for Leave did in fact contribute to the result, with others declaring that the vote is not valid as the turnout was too low and the 52/48 result balanced on a knifes edge – with less than 40% of the eligible voting population voting for Leave.
The carnage in markets was dramatic, with some markets down 10% at the open on Friday and GBPUSD moving nearly 2000 pips during the day as the drama unfolded. Markets, having predicted a Remain vote were caught out of position and in shock. Central bankers were quick to try and calm markets by assuring them that any necessary measures would be taken to make sure the vote did not freeze up the economy or banking system in the UK.
One thing is clear in the post-referendum confusion – politicians in the UK are not in any rush to out article 50 in to place and trigger the exit. David Cameron deflected responsibility for this to the next leader, due to replace him in 3 months. Boris Johnson, one of the leaders of the Leave movement, also expressed no rush in pushing this through. The EU, however, requested that the Brexit take place quickly so that the rest of Europe could move on. Now begins the uncertain period in which disputes over the validity of the vote, timing of the exit and what the future EU/Britain structure might look like will be likely to dominate headlines for some time. With little other news due out this week Brexit will remain a dominant talking point.