Global Markets:
- Asian stock markets: Nikkei down 2.70 %, Shanghai Composite fell 0.20 %, Hang Seng lost 2.10 %, ASX 200 declined 1.30 %
- Commodities: Gold at $1368 (+0.75 %), Silver at $20.34 (+2.20 %), WTI Oil at $46.35 (-0.55 %), Brent Oil at $47.75 (-0.45 %)
- Rates: US 10 year yield at 1.36, UK 10 year yield at 0.77, German 10 year yield at -0.18
News & Data:
- Hong Kong Nikkei PMI Jun: 45.4 (prev 47.2)
- PBOC Fixes Yuan Reference Rate at 6.6857 (prev 6.6594)
- Global stocks slide, bonds surge as Brexit fears resurface – RTRS
- Oil prices fall amid Brexit concerns, supply risks – RTRS
- Fed's Williams says Brexit effect as expected, no big deal – RTRS
- British pound sinks to new depths on Brexit anxiety, yen rises – RTRS
Markets Update:
There were no notable data releases or events overnight, but still plenty of volatility as Brexit fears led to risk aversion in markets. GBP/USD declined to a fresh 20-year low, trading below 1.28 at one point. It bounced from there and rose back towards 1.29, but the outlook remains bearish. Resistance now lies at 1.2950 and 1.3050. EUR/GBP broke above 0.8540 resistance in Asia and reached a high of 0.8620, while GBP/JPY fell almost 400 pips, trading as low as 128.50 after the Tokyo open.
EUR/USD was rather quiet, only declining from 1.1075 to 1.1035. USD/JPY came under renewed pressure from the risk-off sentiment in markets and declined from 101.70 to 100.60. Major support is seen at 110.50 and a break below would signal a move back to 99.
The Australian and New Zealand Dollar are doing relatively well, considering the current market sentiment. AUD/USD is still holding above 0.74, while NZD/USD declined only from 0.7160 to 0.7080.
Upcoming Events:
- 07:00 BST – German Factory Orders
- 08:00 BST – ECB President Draghi speaks
- 13:15 BST – US ADP Nonfarm Employment Change
- 13:30 BST – US Trade Balance
- 13:30 BST – Canadian Trade Balance
- 14:45 BST – US Services PMI
- 15:00 BST – US ISM Non-Manufacturing PMI
- 19:00 BST – FOMC Meeting Minutes
