Brexit. No other word will have more highlight today in the world of financial services. Expect hesitancy, volatility as the voting unfolds but results will only be in time for Friday’s breakfast according the British electoral commission.
The British pound is close to 6-month highs after hitting 1.4842 against the USD early into Thursday. The GBP was helped by recent polls showing support for the remain camp, also dubbed as Bremain, had gained traction.
GBP/USD, trading at 1.4797 as we speak, may not be as decided as it has seemed in these last days of trading. Tradertip technical scenario for the day says the current uptrend could be followed by a corection down to 1.4654 of even 1.4582, unless we go above 1.4846.
The euro remained supported as well as we moved into the Brexit vote, EURUSD is currently at 1.1336 at the time of writing. The USD weakened after Yellen’s testimony last Tuesday, but on the US Dollar index (DXY) we see that support at 93.40 has kicked in, it is a level that has seen buying coming in all throughout June.
Brexit polls open around 0800 CET to close around 2300 CET this evening. In the meantime today’s economic docket will give us the latest figures for the EZ PMIs this morning, in the afternoon we have the usual weekly jobless numbers from the US, Manufacturing PMI, US Home sales and US Leading indicators.
