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Bullet Report | Brexit campaign enters final day
Financial markets have steadied overnight following a rally in stocks globally. GBPUSD remains the strongest currency of the week followed by commodity currencies which are boosted by oils price rise. The subsiding fear from Brexit, has helped risk appetite to return and as a result GOLD has dropped in value. UK is entering the final day ahead of the highly anticipated EU referendum on June 23. Available polls suggest it would be a neck-and-neck race.
Currencies: USD fell overnight as risk appetite in stocks has improved. GBPUSD went as high as 1.4780 resistance however it was contained at that level and sold off to 1.4680 at the moment. USD strengthened also versus the EURO with EURUSD pair dropping from 1.1350 to 1.1240. Meanwhile USDJPY rose as high as 104.90 from 103.60 on the back of improved stock markets sentiment. Commodity currencies also took a step back and then rebounded, with the Australian dollar last up 0.3 %at 0.7465 , moving back toward a seven-week high of 0.7513 touched on Tuesday. As we approach the last day before the In/out UK vote, volatility will sharply increase.
Stocks: Overnight, stocks in the US closed higher in cautious trading, as investors did not react much to Janet Yellen’s testimony in front of the senate. Gains were marginal ranging between 0.14% and 0.27%. Fed chief Yellen said on Tuesday the central bank’s ability to raise interest rates this year may
Oil and Gold: Oil prices rebounded to the highest level in 2 weeks in Asia on expectations for a shrinkage in US Crude oil inventories. Inventory overhang has been a stumbling block for oil prices. The gradual resumption of Canada’s oil-sand production after wildfires and rising output by Iran and Iraq all point to a growth in the global glut. On the other hand, GOLD dropped to its lowest in 2 weeks as the probability of financial uncertainty stemming from the Brexit vote has diminished one day ahead of the event. The yellow metal is trading at 1261 from 1290 yesterday.
As a reminder, easyMarkets will honour our promise to our traders just as we have done during every major market moving event. Just as our free guaranteed stop loss and fixed spreads protected traders during the CHF events of January 2015, so they will protect them during the Brexit.
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