Tier1FX Weekly

  • The weekly outlook will continue to be a blur ahead of Thursday’s Brexit referendum. Sterling liquidity continues to decrease with intra week implied volatility readings through the roof. Be careful placing orders in GBP pairs both ahead and after the vote as the slippage could very likely mimic what we saw happen with the SNB event in January 2015, or at least take it into consideration as a “worse case” event, if the UK is to leave the European union
  • Last week’s FOMC meeting showed signs of a dovish tone to what the market expectations were and we expect Yellen’s speech as she testifies in front of congress on Wednesday to be in the same category and any spike in either FX, rates or equities should be seen as noise and not direction ahead of the all important Brexit vote Thursday
  • Equities sold off sharply early in the week, but found support as Brexit polls later in the week showed signs that the “yes” voters were gaining strength. Expect a nervous range bound market in equities ahead of Thursday and if the vote is to leave, there is scope for a massive sell-off across asset classes as the market will wait for some form of central bank support to the financial markets

See more in the 20160620 WEEKLY OVERVIEW

Get market updates on your email by subscribing to T1 MarketScope weekly newsletter

Share This Story, Choose Your Platform!
Posted on June 21, 2016 Posted in Weekly
Tagged , , , , ,