Jim Leaviss - Referendum result could see imminent UK rate cut

The UK has voted to ‘Leave' the EU. We are seeing some significant moves in fixed income assets first thing this morning as financial markets had very much discounted a ‘Remain' outcome, in line with the last opinion polls and in particular the betting markets, which had heavily backed that outcome. The biggest market movements though have occurred in the foreign exchange markets, where the pound fell from nearly 1.50 to 1.36 versus the dollar - lows not seen since 1985. The US dollar index has rallied by nearly 3%, and the big winner in this ‘risk off' scenario has been the Japanese yen...