24 June, 2016
Markets plunge as Britons voted to leave the EU. Market volatility is likely to pick up in the aftermath of the EU referendum. Central bank speeches and further news flows are likely to keep the markets on the edge today. The sterling and the euro have been trending weaker already, and gold prices and the yen were seen rising as investors flock to safety.
EURUSD Daily Analysis
EURUSD (1.103): EURUSD is currently trading near the support of 1.10 after briefly touching 1.0927 support on the daily chart. Further declines are likely in the near term, but there is a possibility of a pullback to 1.1140 ahead of further declines. To the downside, a break below 1.0985 could signal further declines in the euro potentially towards 1.0562 - 1.05180 levels, last seen in mid November 2015.
USDJPY Daily Analysis
USDJPY (101.6): USDJPY rallied to the resistance level of 106.27 - 105.60 but with the resistance holding the gains, the currency has plunged and is now seen pulling back after a brief test to 98 - 99 levels. In the near term, USDJPY could see a pullback that could be limited to 102.35. Below 98, USDJPY could see a test to 96 levels. The yen pulled back after brief comments from BoJ Governor Kuroda and increased the likelihood of a central bank intervention, especially for the yen.
GBPUSD Daily Analysis
GBPUSD (1.333): GBPUSD has broken the neckline support of the multi-decade head and shoulders pattern. Any pullbacks are likely to be limited to 1.385 and could signal further downside to 1.30. Volatility is likely to continue over the coming days as negotiations on exiting the EU begin.
Gold Daily Analysis
XAUUSD (1328.78): Gold prices were seen testing 1350 levels following the breakout from the bullish pennant pattern. The downside is limited to 1310 support, but further upside can be expected towards 1371 as the minimum target.
The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...
The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...
Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...
The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...
A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...
A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...
The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...
Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...
Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...
|8||Fort Financial Services||67%|