The Global financial markets are awaiting an important event this week as the UK will hold a referendum on 23rd June to decide if it will stay in or leave the European Union. Global markets have fluctuated wildly due to concerns about UK's membership of the EU and it is very difficult to predict the outcome of such referendum.
Two opinion polls conducted after Thursday’s slaying of politician Jo Cox showed the 'Remain' campaign recovering some momentum. On the other hand, the US dollar index settled at 94.30 on Friday.
The British pound surged to $1.4460 at the beginning of week as polls show a small boost to the Remain campaign and due to due to rumors that the ‘Brexit’ referendum vote could be postponed after the death of Jo Cox.
GBP could fluctuate sharply this week in anticipation of the EU referendum, and trade between levels of $1.40 and $1.48 during the course of the week.
EUR traded high vs. USD after polls show ‘Remain’ leading. From a technical point of view, the single currency could fluctuate between $1.12 and $1.14.
Last week, Gold traded below the psychological level of $1,300 after touching as high as $1,316. As Gold is considered a safe-haven asset, Gold prices could hit new highs, if Britain votes to exit the European Union.
Dollar fell to its lowest levels in two-years vs. Japanese Yen as BOJ kept policies unchanged. From a technical point of view, the greenback could decline further to 103 vs. JPY during the course of the week.
Despite oil prices having gained little last week, futures contracts fell amid concerns over the EU referendum.
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.