FOREX-Yen gains across the board on Brexit, Fed concerns

(Updates costs, adds comment, modifications dateline; previous
LONDON) * Yen surges to 3-year high vs euro, pound * Brexit worries spread out across markets * 3-month dollar/yen swaps at least expensive in at least 7 years * Euro/sterling suggested volatility strikes record high By Gertrude Chavez-Dreyfuss

New York City, June 13 The safe-haven yen firmed
broadly on Monday, meeting a three-year peak versus the euro
and sterling and a six-week high versus the dollar on concerns
Britain could vote to leave the European Union in a referendum
two weeks from now. Uncertainty about the outcome of this week’s Federal Open
Market Committee policy conference added to the greenback’s.
decrease, with the dollar underperforming considering that the release in.
early June of a much weaker-than-expected U.S. employment report.
for May. The jobs information has actually considerably reduced the possibilities the.
Fed will hike rates either in June or July. Sterling, on the other hand, has been controlled by Brexit issues.
considering that late in 2014, although other currencies have previously.
appeared mainly safeguarded versus concerns over Britain’s EU.
future.

With bookmakers and guaranteeing exchanges reducing their chances.
on a vote to leave following a few too-close-to-call surveys.
at the weekend, with one putting the “Leave” project 10 points.
ahead, those fears appeared to be spreading out on Monday. Boris Schlossberg, managing director of FX technique at BK.
Possession Management in New York, said Brexit has actually kept the market on.
edge. He mentioned the unknown impact on the UK economy, along with.
the fact that Britain’s exit would “provide the very first official.
obstacle to the current international economic order and could spark a.
much broader and more dangerous fracture of the European Union.”.

As financiers ditched riskier assets, the euro dropped to its.
most affordable against the yen, 119.01, given that February 2013.
It was last at 119.88, down 0.4 percent. Sterling, which was down broadly, also was up to a three-year.
low of 149.50 yen. The pound last traded down 0.7.
percent at 151.79 yen. Against the dollar, sterling was up to a.
two-month low however subsequently recuperated to trade up at $1.4285
. The dollar fell versus the yen to a six-week trough of.
105.75. By mid-morning, the dollar was down 0.5 percent.
at 106.45. Aside from the weak U.S. jobs data for May, Brexit.
unpredictability is likewise seen as “offering the Fed more cover to.
preserve low rates for longer,” stated Joe Manimbo, senior market.
expert at Western Union Business Solutions in Washington. A scarcity of dollars and safe-haven need for the yen.
worldwide are stretching particular dollar-based rates to levels.
more associated with periods of severe market tension, raising a.
warning for the wider monetary system. The benchmark 3-month.
dollar/yen FX basis-swap was last trading at.
-102.25, the lowest in at least 7 years.

( Reporting by Gertrude Chavez-Dreyfuss; Extra reporting by.
Jemima Kelly in London; Modifying by Dan Grebler).

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