Morning Report: 07.30 London
- Well after months of negative campaigning on both sides, the UK’s EU referendum finally goes to the polling stations. Polls still have remained firmly in the lead, but this morning we’re seeing an early pound wobble, so markets are clearly recognising that the result is far from guaranteed. The GBP/USD and GBP/JPY are trading lower after initial gains this morning.
- The EUR/GBP is pushing higher as money flows back into the euro.
- Across markets, the US dollar is slipping lower again, while money flows back into the Japanese yen, which appears to be acting as the ultimate safe haven presently.
Coming up today:
- We have a busy morning in Europe, with French manufacturing PMI and flash services at 08.00. German data then follows at 08.30, with pan European data at 09.00.
- Then at 13.30 we get US unemployment claims, with US new home sales at 15.00.
- Expect continued speculation on Brexit throughout the day.
Trade Idea:
- With the Brexit vote expected to go down to the wire, it may be best to turn attention to other markets with strong trends.
- One such candidate is the AUD/USD which is pushing higher in general trading conditions from China.
- A good way to play this may be a HIGHER trade predicting that the AUD/USD will close above 0.7650 in 14 days for a potential return of 181%.
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