INTERNATIONAL CURRENCY BUZZ :
- Forex – Sterling soars as Brexit fears ease, yen turns lower
- Forex – Aussie, kiwi climb against broadly weaker greenback
- Forex – Yen weaker as safe-haven demand eases on polls, pound gains
EUR/USD wobbled on the market mood, suffering from the changing sentiment regarding the British EU Referendum. Apart from the event itself, we have key German surveys and PMIs. Here is an outlook for the highlights of this week and an updated technical analysis for EUR/USD. A UK exit of the EU is also seen as a danger for the euro-zone. When opinion polls showed a stronger lead for the Leave campaign, the euro suffered. When the pound recovered, the euro followed. Elsewhere, inflation figures were confirmed at low levels for May but industrial output surprised to the upside. In the US, the Fed was certainly dovish, but the dollar weakness that followed did not last on its own, nor did the positive retail sales. The upcoming week will see the culmination in the UK, the euro-zone and for many other currencies as well.
GBP/USD surged more than 2% to near one-month highs on Monday, amid shifting public sentiments regarding a potential Brexit, as longstanding concerns related to the U.K.’s possible departure from the European Union continued to ease.The currency pair traded in a broad range between 1.4532 and 1.4719 before settling at 1.4699, up 2.30% on the session. After testing 1.40 last week, a three-month trough last seen in early-March, the British pound has rebounded sharply versus the dollar in each of the last three sessions. The Pound Sterling is now relatively flat against its American counterpart over the last month, erasing considerable losses from the start of June. GBP/USD likely gained support at 1.3852, the low from Feb. 26 and was met with resistance at 1.4770, the high from May 3.
- BUY GBP/USD ABOVE 1.4675 TGT 1.4695 1.4725 SL 1.4645
- SELL GBP/USD BELOW1.4585 TGT 1.4565 1.4535 SL 1.4615