Financial Market Research and Analysis

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CFD trading is high risk and may not be suitable for everyone.
GBP rallies as UK votes
The EURUSD is rising for a second session in a row on hopes that the UK would remain in the EU. The pair is testing the 1.14 resistance in Frankfurt. Surpassing this level could encourage a further rise towards the 1.1500 mark and 1.1616 May 2nd . If the sentiment turns bearish, we could see the pair breaking the 1.1300/1.1295 support (50-day moving average) on the downside for a further slide to 1.1250 (100-day moving average) and toward the critical support zone, 1.1200/1.1197 (major Fibonacci retrace).

Asian stock markets closed on a positive note (Nikkei +1.07%, Hang Seng +0.31%). The USDJPY traded on the side-lines between 103.53 (June 15th low) and 105.05 (June 20th high). BoJ’s Kiuchi said that additional effects of monetary policy are diminishing and the negative interest rate policy (NIRP) is adversely affecting the markets, while increasing the downside risks.

The big day has arrived. Britain votes for its future in the European Union today. GBPUSD traded to a fresh nearly six-year high as investors favour the ‘remain’ scenario. The event risk remains high.

The Aussie strengthens against the US dollar. Today, the AUDUSD broke an important resistance level and is presently consolidating above the 0.7500 mark. The next resistance is seen at 0.7595/0.7600 (Fibonacci retracement), before the 0.7700 mark. The first support is seen at 0.7447 (major Fibonacci retracement). If 0.7447 support is cleared, we could see a slump to 0.7327 (Fibonacci retracement) and to 0.7295 (200-day moving average).

Gold has traded on the side-lines between 1260$ and 1270$. Some traders may want to stay invested in gold to hedge against the Brexit risks as the UK votes today. The next support is eyed at 1253/55 (Fibonacci retracement), if cleared, could encourage a further sell-off to 1213 (major Fibonacci retracement) and to 1200 mark. On the upside, offers are eyed at 1300 mark and 1317 (June 15th high).

After the US inventories data missed expectations yesterday, with a lower contraction in the supply (actual 0.9M vs expected -1.3M), oil prices started to climb again. Brent holds the ground above the 50$ a barrel and WTI is trading above 49.30$ a barrel on broad risk-on sentiment and cheap US dollar.

CFD trading is high risk and may not be suitable for everyone.