EUR/USD Crashes as Britons Vote for Brexit

EUR/USD sank more than 2% today after yesterday’s referendum in Britain. As it turned out, Britons voted for leaving the European Union even though votes for staying were leading in polls. While the Great Britain pound was obviously the biggest loser, the euro also suffered greatly due to uncertainty about the future of the EU and the eurozone. As for US data, it was bad but that did not mean much to markets as they focused their attention on the shocking news from the United Kingdom.
Durable goods orders sank 2.2% in May while experts had predicted a drop by just 0.5%. The previous month’s reading got a huge negative revision, turning from the increase by 3.4% to a drop by 0.8%. (Event A on the chart.)
Michigan Sentiment Index fell from 94.7 in May to 93.5 in June according to the revised estimate. The reading failed to meet market expectations of 94.2 which were very close to the preliminary estimate of 94.3. (Event B on the chart.)

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