On Monday, the pound declined more in Asia and the yen reversed early increases as policymakers in Japan gauged the next steps in financial markets following previous week's U.K. vote to exit the EU.

GBP/USD dropped 2.04 percent to 1.3401 and the EUR/USD declined 0.85 percent to 1.1023.  USD/JPY changed hands at 102.33, up 0.10 percent, while AUD/USD traded at 0.7425, down 0.51 percent.

The U.S. greenback index increased 0.78 percent to 96.38.

In New Zealand, the trade balance presented a NZ$358 million surplus in May MoM, well beyond the surplus of NZ$164 million seen, with the YoY total at a deficit of NZ$3.63 billion, approximately the same as the prior month.

NZD/USD traded at 0.7084, declined 0.67 percent after the statistics.

In the week onward, additional comments on the timing of a notification, if any, to the EU will be carefully observed. Additionally, on Wednesday, Fed Chair Janet Yellen is scheduled to talk at an ECB central bank conference in Portugal, with investors looking for signs on how Brexit will change the view for the U.S. economy and the route of interest rates.

On Tuesday,  the U.S. is to issue reviewed estimates on first quarter progress.

The previous week, the pound declined on Friday, suffering from its biggest one-day selloff in current history, whereas the greenback and the yen increased as a surprised U.K. vote to exit the EU resounded around worldwide markets. On Thursday, the U.K. voted by approximately 52 percent to 48 percent to cut loose from the world's largest trading bloc.

Sterling fell during doubts that the decision could hit investment in the U.K. economy, loom London's role as a worldwide financial capital and activate months of political doubt.


The poll could lead to a breakup of the U.K., with Scotland now extremely possible to hold a 2nd independence referendum.

Ratings agency Moody's warned Friday that it may reduce the U.K.’s credit rating as it dropped the viewpoint to “negative” from “stable” following the country voted to exit the European Union. 

On late Friday, GBP/USD raised at 1.3616, declined 8 percent for the day, having drop as low as 1.3228 earlier, its sluggish level since mid-1985. It was the poorest day for the pound since the currency’s deflation in 1967.

The pound establishes some support following the Bank of England declaration that it was ready to pump £250 billion to support the smooth running of markets, announcing it will take "all necessary steps" to guarantee financial and monetary strength.

Bank of England Governor Mark Carney stated the Bank of England would think through in the coming weeks whether to take added policy replies.

In a joint statement Central banks from the G7 group also stated that they were ready to offer extra liquidity to markets as desired.

On Friday, the euro drop 2.3 percent compared to the dollar, with EUR/USD at 1.1120 late Friday.

The yen increased compared to the greenback, with USD/JPY touching lows of 99.03, last met in November 2013.

On Additional News

On Monday,  Markets shrugged off official statistics displaying that New Zealand’s  trade surplus broadened to NZ$358 million in May from NZ$292 million the prior month. Analysts had projected the trade surplus to narrow to NZ$164 million the previous month.

AUD/USD dropped 0.68 percent to trade at 0.7411, off Friday’s one-and-a-half month high of 0.7652.


The U.S. dollar index, which gauges the greenback’s strength compared to a trade-weighted basket of six major currencies, increased 0.63 percent at 96.22, still close to Friday’s three-month peak of 96.70.

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