Pound Sterling Down Over 2.0% As Brexit Fears Intensify

Today’s Economic events

RBA Assistant Governor Debelle speech

Japan flash manufacturing PMI 50.2 vs. 52

New Zealand credit card spending y/y 8.90% vs. 7.40% previously

France flash manufacturing PMI 50.3 vs. 49.9

France flash services PMI 49.8 vs. 50.4

Switzerland PPI m/m -0.40% vs. -0.20%

Germany flash manufacturing PMI 50.2 vs. 52.1

Germany flash services PMI 55.1 vs. 54.8

Eurozone flash manufacturing PMI 51.0 vs. 52.1

Eurozone flash services PMI 53.0 vs. 53.4

UK CBI Industrial order expectations -17 vs. -11

Coming up

US Flash manufacturing PMI

Australia CB leading index m/m

The US Dollar opened on a mixed note today after easing back late Friday despite strong inflation data. The Yen opened weaker against the Dollar today with the Asian equity markets posting a modest rally. The Nikkei225 index closed the day with 0.90% gains while the Shanghai Composite gained 2.37%. The Yen declined as USDJPY opened the day at 112.6 and continued to push higher towards session highs near 113.3. At the time of writing, USDJPY is up 0.54% for the day. Flash manufacturing data from Japan released today saw a soft print at 50.2 against expectations of 52.

The commodity risk currencies remained broadly stronger. AUDUSD continued to keep its gains from Friday, rising to session highs of 0.718. The Aussie is up 0.65% for the day against the Greenback. The NZDUSD also surged since the opening session, testing session highs at $0.6661. At the time of writing, the Kiwi is up 0.58% for the day.

The European session opened today with the British Pound taking the center stage. GBPUSD fell sharply as the European markets opened losing over 1.90% for the day marking one of the strongest intraday sell-offs this year. The Sterling weakened as British PM Cameron announced June 23^rd for the Brexit referendum to be held. Meanwhile, he faced opposition with London Mayor, Boris Johnson announcing that he would campaign for the UK to leave the EU. At the time of writing, the ‘Out’ camp seems to be having the upper hand, sending the Pound lower. GBPUSD is currently trading at $1.408 down 2.02% for the day.