After Brexit Emotion Currency Dislocations Present Opportunity

A significant volatility shake-out in currency markets occurred as a result of the Brexit emotion following Friday's vote. The resulting shock has created investing opportunity. A Barclays report notes certain currency pairs that may be undervalued while others could be overvalued as a result of the Brexit scare.

Brexit emotion: Some currency markets look overbought while others were oversold

The surprise Brexit referendum result “weighed” on the British pound and risk sentiment more broadly last week, a June 27 report by Barclays currency strategist Nikolaos Sgouropoulos noted. The Japanese Yen was “the unquestionable out performer,” while the US dollar also benefited.

The question now, global stock markets up for a second straight...