* The Aussie Dollar sits top of the Forex Majors leader-board, ripping 100 pips on the RBA’s lack of easing bias following yesterday’s decision to leave interest rates on hold at 1.75%. The central bank’s return to neutral is the typical ‘wait and see’ approach from Stevens that we have come to expect. Wait for Brexit volatility to settle, wait for the Fed hike to *hopefully* drop the Aussie, and wait for more on the stubbornly low inflation readings that forced their hand to cut at the last meeting.
* Speaking of Brexit Risk, Sterling markets are on edge. While official prices and expectations still massively skewed toward Bremain, agenda driven newspaper polls are all over the place and Cable is reacting to every headline as liquidity thins out into the vote. Those traders at their screens yesterday during Asia were given this gift:
So a few hours later and still no definitive answer on what exactly happened to spike #GBPUSD.
As you were then. pic.twitter.com/G3q84Dj64f
— Vantage FX (@VantageFX) June 7, 2016
A fat finger?? Ahh, okay…
* The US Dollar has been weak across the board following the dismal NFP reading and Yellen all but ruling out a June/July hike. This weakness has helped even the weak EUR/USD continue to tick higher. Draghi just can’t catch a trick with his stimulus program ready to be unleashed further in the coming week.
* Stocks and Oil remain strong, but both heading into technical resistance. These two markets just love to buck the major crowd sentiment. If watching CNBC boffins isn’t your thing, check out the new Vantage FX Client Sentiment indicators that we have placed on the homepage for an insight into how the Vantage FX trading book is skewed.
On the Calendar Wednesday:
JPY Current Account
JPY Final GDP q/q
CNY Trade Balance
GBP Manufacturing Production m/m
USD JOLTS Job Openings
USD Crude Oil Inventories
Make the switch to true ECN Forex Broker Vantage FX today!
Dane Williams – @VantageFX
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