Yen Falls as Euro, Pound Rise Amid Lull in Brexit-Linked Anxiety
17 Jun 2016 06:23, GMTTalking Points:
- Yen falls while Aussie, Canadian Dollars rise as risk appetite recovers
- Euro, Pound rise with stocks amid correction in “Brexit”-driven moves
- Consolidative dynamics set to prevail into the end of the trading week
The Japanese Yen underperformed in overnight trade as regional stocks recovered, sapping demand for the anti-risk currency. The sentiment-linked Australian and Canadian Dollars followed shares upward. The New Zealand Dollar lagged the rest of the commodity FX bloc, with prices in corrective mode after yesterday’s surge in the wake of first-quarter GDP data. The Euro and British Pound likewise followed shares upward, underscoring the centrality of "Brexit" fears as the catalyst driving recent risk aversion.
Looking ahead, a quiet economic calendar through the end of the week and the suspension of UK referendum campaigning until next week seems likely to leave markets in correction mode. European and US stock index futures are pointing higher in late overnight trade, hinting that overnight trading patterns may continue as amid profit-taking and pre-positioning for next week’s fireworks. Indeed, the average 1-week implied volatility for the US Dollar against its top counterparts is at the highest since November 2008.
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Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| 22:00 | NZD | ANZ Job Advertisements (MoM) (MAY) | 0.2% | - | 1.8% |
| 22:30 | NZD | BusinessNZ Manufacturing PMI (MAY) | 57.1 | - | 56.6 |
| 01:00 | NZD | ANZ Consumer Confidence Index (JUN) | 118.9 | - | 116.2 |
| 01:00 | NZD | ANZ Consumer Confidence (MoM) (JUN) | 2.3% | - | -3.2% |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| 08:00 | EUR | Eurozone Current Account SA (APR) | - | 27.3b | Low |
| 08:00 | EUR | Eurozone Current Account NSA (APR) | - | 32.3b | Low |
| 09:00 | EUR | Eurozone Labour Costs (YoY) (1Q) | - | 1.3% | Low |
| 11:45 | EUR | ECB’s Coeure Speaks in Berlin | - | 27.3b | Low |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EURUSD | 1.0889 | 1.1053 | 1.1139 | 1.1217 | 1.1303 | 1.1381 | 1.1545 |
| GBPUSD | 1.3675 | 1.3916 | 1.4059 | 1.4157 | 1.4300 | 1.4398 | 1.4639 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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