By Victor Reklaitis
The Brexit beatdown for markets is on hold, though it’s still the early going Tuesday.
“Sterling GBPUSD, +1.2250% has bounced this morning, and investors are taking on a bit more risk,” writes Richard Perry at Hantec Markets.
Even so, plenty of traders are forecasting that we’re just seeing a temporary letup in the global selloff and more pain is ahead.
“I prefer selling the rallies, rather than buying the dips, until the storm calms down,” says FXTM’s Hussein Sayed in a note.
Safety plays such as gold GLD, -1.18% , the dollar UUP, -0.44% and the yen USDJPY, +0.56% are looking overpriced, but they’re likely to score more short-term inflows if the route to an actual Brexit remains unclear, Sayed adds.
Today’s call says gold miners now could catch their breath, and then those stocks will rip higher.