Daily Report: European Majors Jump as "Remain" Camp Gained Momentum in UK

European majors open the week sharply higher as latest Brexit polls in UK showed that support has swung back to the "remain" camp. A poll by Survation for the Mail on Sunday showed 45% supporting "remain" with EU and 42% supporting "leave". A YouGov survey for the Sunday Times showed Published at Action Forex (ALL)

GBP/USD flying high as ‘Bremain’ odds surged to 74% - Rabobank

Michael Every, Head of Financial Markets Research at Rabobank, notes that the GBP/USD is up to 1.44 as ‘Bremain’ odds have surged to 74% along with the Bloomberg composite poll tracker ‘Brexit’ support dipping to 42% vs. 48% on 15 June.

Key Quotes

“However, there could potentially still be some room for ‘Anarchy in the UK’ markets, or at least volatility, if those odds start to shift back. (Of course, we all sincerely hope both sides of the referendum campaign will stick to their recent pledges to tone it down and remain mutually respectful following the appalling murder of MP Jo Cox last week.)”

Published at Forex News

NZ: Consumer confidence posts seventh decline in the past nine quarters - Westpac

Satish Ranchhod, Senior Economist at Westpac, notes that the New Zealand’s consumer confidence has fallen for a second quarter and is now well below the peak reached in 2014, and is below its long-run average.

Key Quotes

“New Zealand households have become increasingly nervous about the economic outlook. The Westpac McDermott Miller Consumer Confidence Index fell to 106.0 in June (versus 109.6 in March). That’s the seventh decline in the past nine quarters, and leaves confidence at below average levels.

While households are feeling a little better about their current financial position, there has been growing pessimism about the economy’s trajectory. The number of households expecting favourable economic conditions over the next year has fallen for a second quarter, and the number expecting positive economic conditions in five years time has plummeted to the lowest level in 25 years.

This degree of nervousness about the economic outlook has historically been seen when the economy is in recession. But as last week’s GDP figures revealed, the economy is actually growing at a firm pace, with growth in the year to March coming in at 2.4%. And signs are that growth will continue around this pace for some time.”

Published at Forex News

Market Morning Briefing

Dollar Index (93.55) opened with a sharp gap down and could continue to trade lower for a couple of sessions. Major currencies are strong against the Dollar and could continue so this week. RBI governor Mr. Rajan would not be re-elected for a second term, news revealed on Saturday. This Published at Action Forex (ALL)

ECB's Visco: Central banks ready to intervene in case of Brexit

In an interview with newspapers over the weekend, ECB Governing Council member Ignazio Visco was quoted by Reuters saying, "A British vote in favour of leaving the European Union is the risk that worries us the most at the moment."

Mr. Visco added, "We are keeping an eye on this risk day by day and all central banks, not just the European Central Bank, are ready to intervene with the conventional instruments they have: interest rates, repos, swaps." 

Published at Forex News

Asian stocks cheer Bremain leading, Nikkei 225 jumps +2%

The stocks on the Asian bourses extends Friday rebound and look solid at the beginning of  an action-packed week ahead, with the sentiment likely to be driven by EU referendum held on June 23rd.

The Asian equities jump higher as easing Brexit fears reinforced risk-on trades into the markets, while higher oil and copper prices led strong gains on the energy and resource stocks.

Over the weekend, as string of Brexit opinion polls showed the votes shifting in favour of the Remain camp after last week tragic death of British Member of Parliament Jo Cox. BMG phone poll has 'Remain' leading by over 7 points, YouGov: 43% Leave, 44% Stay, 9% Undecided, Opinium: 44% Leave, 44% Stay, Survation: 42% Leave, 45% Stay, 13% Undecided.

Nikkei leads the show

The Japanese benchmark index, the Nikkei 225 bounces +2.21% to 15,943, while USD/JPY rises +0.41% to 104.60 levels. The Australian markets also followed suit, with the ASX 200 index up +1.12% at 5,220.

While the Chinese equities bucked the trend and trade in the red, with the benchmark Shanghai Composite index dropping -0.47% below 2,900 levels, the CSI300 index loses -0.14%.. Hong Kong’s Hang Seng rallies +0.88% to 20,335.

Published at Forex News

Gold dumped amid risk-on ahead of a big week

Gold set-off the week on a bearish note and now remains heavily sold-off into renewed optimism after Bremain led the way, as reflected by latest Brexit polls conducted during the weekend.

Gold revisiting daily lows near $ 1280?

Currently, gold sinks -1.21% to 1282.95, having posted day’s high at 1292.24 and day’s low at 1279.97. The bears remain in charge at the start of a brand new week, as markets dump the safe-haven amid a renewed risk-on wave triggered by the Bremain votes leading the way.

Looking ahead, the upcoming week seems busy for the gold traders, as the EU referendum along with Yellen’s testimony are likely to hog the limelight ahead of Friday’s durable goods data from the US.

Gold Technical Levels                                   

The metal has an immediate resistance at 1288 (5-DMA) and 1300 (psychological levels/ previous top). Meanwhile, the support stands at 1277.20 (10-DMA) below which doors could open for 1270 (round number).

Published at Forex News