June 28th 2016: Pound Rallies After Second Wave of Turmoil

• We’re seeing a repeat of Monday morning so far, but let us hope the rest of the day does not follow suit. The pound suffered follow on selling as the day progressed yesterday after a promising start, but so far today, markets appear calmer. The GBP/ USD is up around 0.5%, with the GBP/ JPY up the same amount. The EUR/ GBP is also retreating from yesterday’s high.

• Elsewhere, the main risk barometer of the Japanese yen is showing signs of ease as the USD/ JPY trades higher. The US dollar index has also eased.

• Across Europe, the euro did not escape punishment yesterday, but is nudging higher this morning.

• Gold has also eased back, reflecting either an easing of fears or profit taking.

• Today we have the EU Economic Summit.
• Following this we have Final GDP at 13.30, followed by CB Consumer confidence at 15.00.

Trade Idea: 

• It’s unlikely that we’re out of the woods and previous crises have played out over months not days. Right now its hard to see where the good news will come from other than general relief each day that markets aren’t making double digit losses. This relief could, in turn produce a rally, but in the short the short term we could well see further downside.

• A good way to play this is on the GBP/ JPY with a ONE TOUCH trade predicting that the pair will touch 72.00 within the next 14 days for a potential return of 204%.

Powered by: Binary.com