The first few days of the year were particularly challenging for capital markets. Further incertitude regarding the strength of the US cycle and the possibility that the Chinese economy is weathering a heavy depression drove risky assets lower, bucking the traditional early-year trend.

As yet, sterling appears not to have reacted to the looming referendum on the UK's continued membership of the European Union. Over the short to medium term, however, the currency should end up reacting negatively, so great is the fallout for the British economy. In particular, one would expect the volatility displayed by sterling to pick up at the start of 2016, bearing in mind that opinion polls are very tight...

Barclays read recent Chinese measures as evidence that officials are accepting that the country's growth trend has been hit by the build-up of imbalances that can no longer be sustained. Barclays's analysts think that a lower Chinese growth trend, more than the cyclical slowdown, opens interesting opportunities for FX markets in the months ahead.

The depreciation of the Chinese currency took many investors by surprise. And a surprise it was, although not necessarily a negative one, says Victoria Mio.

Salman Ahmed, LOIM's Global Strategist, has commented on the Swiss National Bank's policy update this morning. He discusses the implications for the Swiss currency and the wider impact on the eurozone economy.