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Weekly Market Outlook – 19/06/16

Weekly Market Outlook – 19/06/16

Brexit, the whole world will be watching. It cannot get much easier to highlight perhaps the biggest news and economic event of the calendar year. The Brexit vote will be held this Thursday and its results are certain to create turbulence no matter the result. 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 has been trading under pressure the past six months and the headwinds that Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More has faced is due to nervous sentiment surrounding the decision that will be made by the British public this week.

Early on Monday Trade Balance numbers will come from Japan. Germany will present inflation In economics the term inflation In economics the term inflation In economics the term inflation refers to price values that are rising on a regular basis in which t... More refers to price values that are rising on a regular basis in which t... More refers to price values that are rising on a regular basis in which t... More data also. 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 has been trading stronger 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 and recently the Yen has picked up a stronger pace as safe haven seekers have been drawn in from Asia. The EUR The EUR The EUR is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More is the official currency of the European Union. Presently 19 out of the 28 collective  nati... More managed to climb back from lows made early last week and held onto some of its gains. Both the JPY and EUR will be affected by cautious sentiment globally as the Brexit vote shadows the financial markets.

International Indices have also turned in lackluster results. Wall Street was negative last week across all of its major Indices. The poor results on the Dow Jones, NASDAQ and S&P are not only because of Brexit worries. Investors are growing cynical about the ruminations coming from 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 and other Central Banks. Traders need to be aware that Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More Chairwoman Janet Yellen will be testifying in front of the Senate and House of Representatives on Tuesday and Wednesday respectively about monetary policy. It is possible because of the coming U.S. elections in November that this round of economic talk could be politically charged.  Yellen’s remarks will certainly have impact on the markets if she is pressed on policy that many view as flawed.

On Tuesday the German ZEW Economic Sentiment reading will be released and on Wednesday a tentative 30-year bond auction will also come from the country. Bond yields internationally continue to be extremely low and this has caused global investors concern. Traders seeking profits who choose to diversify may be tempted to take more risks as they seek profits elsewhere.  Indices, stocks, FX and commodities are focal points. Gold has found safe haven buyers the past month, certainly its value has not been a one way street, but the precious metal has been able to turn in some sustained gains. Crude Oil Inventories will also be published on Wednesday from the States. Crude Oil via Brent and WTI Refers to West Texas Intermediate Refers to West Texas Intermediate Refers to West Texas Intermediate which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More which is often the actual physical resource that the asset Crude O... More prices have been under pressure and this may continue this week with so many questions perplexing investors.

Manufacturing PMI readings will come from Germany and France on Thursday, but at the same time Brexit voting will be getting largely underway in the U.K. and all eyes will be on the results to come. The broad markets might turn very quiet on Wednesday and show incredible spurts of volatility on rumors and ramblings about polls being conducted in the U.K. leading up to the vote. On Thursday as exit polls are discussed, investors will be on a proverbial razor’s edge as they try to figure out what the outcome will be. It is certain that late trading on Thursday and early on Friday will become volatile globally depending on what the British public has decided.  If the U.K. has voted to stay in the European Union both the GBP and EUR can be expected to gain against the USD, a vote to leave the E.U. will put fuel into the FX market also and the GBP could take additional hits downward.

Also on Thursday, weekly Unemployment Claims will come from the States. Jobless numbers have become a focus again in the States. The same report this past Thursday was negative. On Friday morning Germany will see the Ifo Business Climate reading and the U.S. will present Core Durable Goods Orders.

Traders need to put on their safety belts this week and have to acknowledge that they will be participating in what is sure to be a historic week.  The global markets are sure to be fast and the psychology of the market will be tested in full.