Forex news for US trading on June 13, 2016
- ICM Brexit poll shows 6 point lead for leave - Guardian
- Canada FM Morneau: Encouraging signs in Canada economy
- IMF: Canada is coping well with lower oil but may need new restrictions on housing market
- VIX surges to highest since March 1
- Microsoft to buy LinkedIn...
- ECB's Hansson: ECB policies to be driven by inflation expectations
- Fitch affirms Japan at "A" but lowers outlook to Negative
Markets:
- JPY leads, GBP lags
- Gold up $10 to $1283
- WTI crude down 31-cents to $48.76
- US 10-year yields down 2.7 bps to 1.61%
- VIX up 4 points to 20.95
- S&P 500 down 16 points to 2080
The market was held in suspense at the promise of a Brexit poll. It was delayed a few times but finally hit after the European close. But the delivery was a fiasco as newswire headlines first said the 'remain' side was ahead by 6 points and then reversed (correctly) to say the 'leave' side had a six point lead.
The pound shot more than a cent higher first but quickly spilled back lower. Interestingly, it didn't continue lower and is trading at roughly the same levels as before the poll. Still, it's clear that cable trading will be dangerous in the 10 days ahead.
EUR/USD dipped 40 pips in early trade but the European low of 1.1232 held and it was a quick turnaround from there as the pair rallied 70 pips from the lows to a session high of 1.1303. There wasn't much appetite to buy above the big figure and it was a sideways chop in the final few hours.
USD/JPY jumped to 106.50 from 106.00 as US equities opened but gave it all back by the time Europe finished up. Risk aversion has been rising but it hasn't hurt this pair and yen crosses have been relatively well behaved despite a soaring VIX.
USD/CAD hit a daily high and low in US trading and within a couple hours. The pair ramped up to 1.2827 early, which was the best level in six days but it quickly sank back to 1.2750. However as oil prices sagged and risk trades slipped late, it slowly climbed back above 1.2800.
AUD/USD traded in a relatively narrow range from roughly 0.7375 to 0.7410 and is testing the lower end of that range late. If it breaks, watch Monday's Asian low of 0.7360.
