WASHINGTON (dpa-AFX) - The dollar is up sharply against its major European rivals Friday afternoon, but is losing ground against the Japanese Yen. The British pound plunged to a 31-year low after Thursday's referendum unexpectedly resulted in a British exit from the European Union. The result stunned global markets, as recent polls had showed increased support for the 'Remain' side of the issue.
The resulting 'Brexit' has sent investors fleeing to safe havens on fears a poorly managed Brexit could lead to a U.K. recession. The Japanese Yen and the U.S. dollar are benefitting from the move, as well as U.S. treasuries and gold.
The results of the referendum were announced in the early hours of the morning. Those in favor of leaving the European Union garnered 51.9 percent of the vote, while 48.1 percent chose to remain.
Prime Minister David Cameron announced on Friday that he will step down in October. Cameron, who had strongly called for a 'remain' vote, said the British people voted to leave the European Union and their will must be respected.
The European Union stands ready to launch negotiations swiftly with the United Kingdom regarding the terms and conditions of its withdrawal from the European Union, the EU said in a joint statement on Friday.
Central banks across the globe, including the European Central Bank and several others in Europe, the Bank of Japan and the Federal Reserve said they were prepared for any contingency and stand ready to add extra liquidity when needed.
The dollar soared to a high of $1.3218 against the pound sterling Friday morning, but has since eased back to around $1.3695.
U.K. mortgage approvals increased in May despite fears of 'Brexit', the British Bankers' Association reported Friday. The number of mortgages approved for house purchases rose unexpectedly to 42,187 in May from 39,967 in the prior month. It was forecast to fall to 37,500 in May.
The buck climbed to a 3-month high of $1.0905 against the Euro Friday morning, but has since retreated slipped back to around $1.1145.
German business confidence improved unexpectedly in June, reports said citing survey results from Ifo Institute on Friday. The Ifo Business Climate indicator rose to 108.7 in June from 107.8 in May. It was forecast to fall to 107.4.
The total value of new orders received by the German construction industry decreased in April, figures from Destatis showed Friday. The seasonally, working-day and price-adjusted orders in construction fell 0.8 percent month-over-month in April.
The French economic growth improved as initially estimated in the three months ended March, latest figures from the statistical office Istat showed Friday. Gross domestic product advanced 0.6 percent quarter-on-quarter in the first quarter, confirming the second estimate, after a 0.4 percent expansion in the previous quarter.
The greenback dropped to over a 2-year low of Y98.95 against the Japanese Yen this morning, but has since bounced back to around Y102.235.
Producer prices in Japan were up 0.2 percent on year in May, the Bank of Japan said on Friday. That topped forecasts for 0.1 percent following the upwardly revised 0.3 percent gain in the previous month.
New orders for big-ticket manufactured goods dropped more than expected in May. A report from the U.S. Commerce Department showed that durable goods orders fell 2.2 percent in May.
This followed a revised 3.3 percent increase in the previous month. Economists had expected a drop, but they had generally predicted a more modest retreat.
Consumer attitudes cooled slightly by the end of June compared to where they stood in the middle of the month. This according to the results of a highly influential survey of consumer sentiment released on Friday. The results were below what economists had expecte
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