Brexit weighs on market

22 June, 2016

It's been one of those trading days today where you can't escape the Brexit and all its fall out as it continues to dominates news feeds globally - especially when it comes to the trading world. The UK economy continues to feel the heat globally as once again no is quite sure of the direction the market is taking, but at present it looks to be so far a positive view as the UK polls are showing a slight lean to the remain side. After the 23rd little will matter when it comes to the Brexit if Britain votes to remain, but the deciding factor will be if markets think this is a one off in the long run. Certainly it does not feel to be the case and the recent rejection of resistance is something to go off for traders looking for confidence.

On the charts the rejection of 1.4774 should not be a surprise given that the economic climate has so far been very volatile. The market continues to feel a number of polls, all of which paint very different pictures and the recent UK elections add doubt to the polls over all as to the impact they will likely have. Regardless from the current position the GBPUSD could easily fall to support levels at 1.4446, and this could easily be achieved on the 23rd given the volatility of the day. Certainly if we do see a drop, I can see support at 1.3961 being the optimal target for support traders in the short term, as markets will struggle to price the GBPUSD. Technical levels will also struggle in the long run, as an event like this throws the door wide open to horrific volatility with little to no repercussions for traders.

Overseas and the NZD continues to deft expectations as it plays off the back of a weaker USD. As usual the NZDUSD continues to come under pressure as the USD weakens and pushes it higher up the charts, this also comes on the back of recent comments from the finance minister  who tried to talk down the value of the high flying kiwi. However, the jump in NZ migration data to +5500 will be noticed by the Reserve Bank of New Zealand which will put further pressure on the NZ housing market.

On the charts the NZDUSD has jumped higher to 0.7163 and at this level the currency movements are unsustainable given the NZ economy is still struggling. Long term expectations are for a drop lower to 0.7046 and below support levels at 0.6961. The market will regardless be looking at the 20 day moving average which could provide support after the effects of the Brexit vote in the short term. Either way the NZDUSD continues to find itself over bought at present and a correction is most certainly on the cards.


Source link  
EM Currencies slide as Dollar appreciates

Emerging market currencies have been treated without mercy by a broadly stronger Dollar, yet again. The Dollar Index appreciated to its highest level this year...

Pound crumbles as UK inflation fails to rise

Repeated signs of easing inflationary pressures in the United Kingdom could plant a seed of doubt among investors about whether the Bank...

Global shares come under pressure

Asian equities fell on Tuesday after Oil prices tumbled by more than 4.6% during the previous session, following reports that Saudi Arabia has offered...


USD and Nasdaq continue strong run

US inflation figures were the main focus today for the US economy, as it saw CPI lift in line with expectations to 0.2% m/m. Well this is not a strong hawkish signal...

Trade war escalation triggers risk aversion

A fresh wave of risk aversion swept across financial markets after the United States threatened to impose tariffs on an extra $200 billion worth of Chinese goods...

Investors shrug off trade fears

Trade frictions dominated the headlines last week, but Wall Street investors shrugged off worries of an escalating trade war and instead cheered...


US tariffs on China to steer attention away

Confirmation in the early hours of Friday morning that President Trump will impose tariffs on Chinese imports starting today is likely to take attention away...

OPEC looks to increase supply

Oil markets have been focused on the OPEC meeting happening at present which is likely to wrap up tomorrow and give some serious insight into OPEC...

Market event not to ignore

In a week where market headlines continue to be driven by a potential trade war breaking out between the United States and China along with the latest OPEC meeting...


In the past 24 hours Bitcoin has gained 1.54% and reached $6516.37115715. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.3466% and is now at $1.138. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -15.93% and is now at $299.872779344. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: