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An Unsure Ending is Coming

An Unsure Ending is Coming

The Federal Reserve The Federal Reserve The Federal Reserve The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy When used by traders and investors monetary policy usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More usually refers to Central Bank policy concerning ... More ... More is the Central Bank of the United States of America and sets the monetary policy... More is the Central Bank of the United States of America and sets the monetary policy... More gave traders a glance into the looking glass last night and while the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More was polite enough to admit the reality that many of us knew, it doesn’t mean that the clouds have cleared. The economic landscape is still cloudy and the threat of storms is unusually strong. The winds that have been whipped up by the Brexit vote that is approaching was given a considerable amount of conversation by the Federal Reserve last night which admitted that they are uncertain what the exact effects from a ‘ leave’ outcome would be – except to say they fear it will not be good. An acknowledgement that the American economy remains soft was obvious too.

The predominant theme is that traders are faced with is an unsure ending regarding their investments. FX pairs have seen considerable pressure. The JPY The official currency of Japan is the JPY The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen The official currency of Japan is the JPY which is also knows as the Japanese Yen to investors and t... More to investors and t... More to investors and t... More which is also knows as the Japanese Yen to investors and t... More finds itself gaining quickly against the USD The USD The USD is the official currency of the United States of America. It is the largest reserve currency... More is the official currency of the United States of America. It is the largest reserve currency... More as the Bank of Japan has proven unable to counter attack the massive inflows of money coming into the Yen as safe haven traders seek shelter. The GBP The GBP The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More finds itself at very interesting support When investors and traders use the term support When investors and traders use the term support When investors and traders use the term support, or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More , or support level, they are often speaking about a p... More levels. The value of Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has made it look quite vulnerable as pressures have mounted because of the threat from a Brexit, this as financial institutions have certainly positioned investments into hedge modes. Some traders could be looking at the Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More however as a buy low opportunity, particularly if the U.K. decides to stay in the European Union.

Janet Yellen yesterday spoke during the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More Press Conference about economic conditions that were less than optimistic. She finally had to speak to the points about manufacturing numbers that have been weak and investments from corporations that remain muted. To top off her cautious comments she also discussed jobless numbers that have suddenly become troubling. While Yellen did say that the Fed remains optimistic about the U.S. economy – what else would she say? –  she certainly put the brakes on any considerations for interest rate hikes in the short-term. A July increase now looks to be completely out of the question and an August or September hike seems to be problematic, not only because economic activity is lacklustre, but there is also the ‘minor’ issue of an U.S. election for POTUS taking place in early November.

The Bank of England will release their Official Bank Rate today, but there is even less chance of the BoE acting today than there was last night with the Federal Reserve. The markets will essentially have the Philly Fed Manufacturing Index and weekly Unemployment Claims from the States today, but the real story are the unknowns that are ahead that are causing a massive amount of nervous sentiment in the global Indices, FX and commodities.

The culminate affect from this three headed monster consisting of weak global economic data, the Brexit vote, and failures by all the Central Banks is making investors feel ill with unease and causing financial houses and independent traders to consider shuttering their risks – in other words finding safe places to hide and seek profits as carefully as possible. Throw in the U.S. election and it really becomes a great book with an unknown ending in which the reader will absolutely be riveted, but understands the final pages might be quite grotesque.

One potential ending that speculative traders will want to consider depends on what their viewpoints are regarding the potential of a Brexit. There are two clear options for speculative Brexit plays – and if you are not willing to join either, then a solid cautious position is as good as anything else – thus the reason the JPY, USD and Gold are all seeing some short-term takers and Indices have seen hedging. Preservation is the goal for many at this moment as they turn the pages within this financial epic.