(6-9-16) BREXIT is an acronym for Britain leaving the EU, which is up for a vote on June 23.
So how will equities, gold and the euro react to BREXIT?
The first and most obvious market reaction is that the British pound would move lower if BREXIT goes through. The British pound has already sold off about 5% in the last 30 days in anticipation of such a move.
Because the vote is close, the British pound has gotten sold down because the British pound would have the biggest reaction. The flip side of that, of course, is that if BREXIT gets voted down there's going to be a hell of a short covering rally in the British pound. The reaction to the euro, I think, is uncertain. BREXIT if approved becomes a net negative for the euro.
In a column called "BREXIT v. Yellen, Martin Armstrong of ArmstrongEconomics.com, writes "The euro would bounce if BREXIT won, giving a bit of a bid there."
I think that's hard to judge and it really depends on where the euro is trading on the day of the vote.