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Weekly Market Outlook – 26/06/16

Weekly Market Outlook – 26/06/16

Global markets are certain to remain volatile this week as the Brexit outcome continues to have its outcome interpreted. One of the key points that traders must grasp is that the hysteria that has broken out in the markets and caused massive moves in FX, commodities, Indices and stocks will eventually calm. It is a near certainty that investors will begin to search in earnest for oversold assets Can be stocks, commodities, indexes or Forex currency pairs. More as political and economic spheres digest the decision of the U.K. to vote itself out of the European Union and contemplate the future via new paths.

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 went on a wild ride as results started to become clear from the Brexit vote early Friday. Sterling The GBP is the official currency of the United Kingdom. The GBP is a major currency and currently ra... More went into free fall, but did recover and lifted itself off of its lows as the day progressed. 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 suffered the same fate as it was sold into fast markets, but did find buyers as the afternoon progressed. Global Indices were hammered throughout and will have to be watched carefully by traders attempting to bottom fish, Japan will be quite interesting to watch early Monday as it begins trading and the Nikkei responds to what was a terrible Friday.

Europe may continue to hurl recriminations at the U.K. this week via politicians who are short sighted. However, countries are stepping up already and reaffirming their important relationships with the U.K. such as the United States, Canada, Germany, and Asian nations. The U.K. still exists and it is a matter of moving forward with new treaties. While the European Union may feel like a jilted lover, it still has many of its own problems to sort out and may face other national revolts from member nations who have watched what the U.K. has undertaken and consider their own moves.

The GBP will get plenty of attention by traders this week and so will the EUR. Safe havens such as 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 , 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 and Gold will also continue to see investors consider a move to park their money within their realms as they gear themselves for preservation during the market chaos that is likely to take place this week. However, there should be no mistaking that traders will find opportunities in the global markets. The selloff in many assets Can be stocks, commodities, indexes or Forex currency pairs. More sets the table for a rebound when tranquility comes back into the very nervous sentiment that currently has taken hold.

What took place via the Brexit is historic and the outcome of the vote may only be the beginning of a political revolt by the public, which has shown that it will not abide with the wishes of what is perceived as a political elite who govern unresponsive bureaucracies.

Economic data will be published this week and an important report will be the Final GDP from the U.S. on Tuesday. 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 will be watched carefully for its reaction to the Brexit. With plenty of uncertainty in the financial markets the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More will be keen on seeing stability first and foremost among investors and within the public. The growth numbers from the States have been weak. It is likely the Fed The Federal Reserve is the Central Bank of the United States of America and sets the monetary policy... More will have no desire to raise interest rates the remainder of 2016 because of the political reverberations which are being felt and will develop further. The Federal Reserve like everyone else will want clarity. The chance that the Fed will not move makes the USD a very interesting long-term position if and when enough investors begin to feel that other currencies have been oversold.