Last week began with presentations by European Central Bank President Mario Draghi and the head of the US Federal Reserve, Janet Yellen. Overall, nothing newwe have not heard from them, except willingness to act in case of necessity on the part of the ECB and the lack of haste in further tightening of monetary policy by the FRS. Thus, these events had no significant effect on the currency market, participants of which were looking forward to the results of referendum in the UK.
On the background of the social polls which have showed the excess of opponents of the UK's exit of the European Union over the number of his supporters, the British pound and the euro enjoyed a certain demand, and the Japanese yen declined due to profit-taking on long positions in it. As a result, the pound was up against the US dollars up to 1.5016, the euro/dollar tested the resistance in the area of 1.1426, and the dollar/yen - the level of 106.81. On the eve of the referendum published macroeconomic statistics had no effect on the dynamics of these pairs.
The preliminary results of the referendum appeared in Friday's Asian session. According to these results, Britons still chose termination of the UK's membership in the EU, which caused quite logical massive decline in the British pound, the euro and the strengthening of the yen, especially in the cross-rates of these currencies. A lot of analysts are expecting relatively negative economic and political consequences from the "Brexit" not only for the UK but for the EU as well. On this background it is expected an increase of the volatility on the markets, where the pressure on the pound and the euro will persist, IAFT traders we recommend to be cautious. BlogLink
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International Association of Forex Traders
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