June 14th 2016: Pound Feels Polling Pressure

• This morning, the British pound is once again a poor performer as more polls point to a tighter EU referendum result. Sterling is down across the board, especially compared to the Japanese yen which continues to pick up safe haven momentum.

• The USD/ JPY has left Monday’s opening gap unchallenged, while the US dollar index nudges lower.

• Elsewhere, the New Zealand dollar is struggling.

• Coming up today we have UK inflation data at 09.30, with a small increase expected for CPI and RPI. PPI output is released at the same time.
• Then at 10.00 we get European employment change and industrial production.
• From 13.30 we switch to the US for retail sales data. Import prices follow at 13.30.

Trade Idea: 

• The GBP/ JPY has been in a tailspin in the build up to the referendum and this is likely to continue as the leave campaign builds momentum.

• A good way to play this is a LOWER trade predicting that the GBP/ JPY will close below 149.00 in 8 days (the day before the referendum) for a potential return of 146%.

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