[B]Daily Fundamental Dose: 21-June-2016[/B]
Hello Traders,
On Monday, with a surprise swing in polls favoring the Bremain campaign, the GBP registered highest daily gains since 2008 while European shares also marked biggest rallies since August. However, the JPY still remained strong as nearly 40% respondent were still supporting the UK to leave European Union and the US Fed is scheduled to provide bi-annual Testimony during Tuesday and Wednesday. The AUD, NZD and CAD were all on the positive trajectory as fading tensions over the Brexit helped fueling the commodity demand, including Crude prices. Moreover, the Saudi Arabia’s crude oil exports dropped in April despite high production levels, soothing the global oil supply-glut. At last, the USD dropped heavily after the sudden spurt in EUR and GBP forced market players to further punish the greenback ahead of the Fed Chair’s testimony.
Early today, the Reserve Bank of Australia, in the minutes of recent monetary policy meeting when the central banker stood pat with present monetary policy, said that the economic growth increased to be a bit above estimates of potential growth but showed concerns for Inflation. The same helped the Australian Dollar to extend its up-move. The Japanese Finance Minister, Taro Aso, again said on Tuesday that the Japan would respond to rapid currency moves, although he said the country would not intervene in the market so “easily” and triggered a bit of profit-booking in JPY.
Given the recent optimism at EU & UK walking with the uncertainty over the US, the JPY can continue holding its up-move; though, a bit hawkish than expected statement from Fed Chair might extend its recent correction a bit. Moreover, the ZEW economic sentiment from EU & Germany can helped determine the EUR moves while German Constitutional Court Ruling can cause some profit-booking in EUR if it opts to alter the ECB’s present monetary actions.
Have a nice trading-day….