Today is the day we get the announcement coming out of the United Kingdom as to whether or not the British voted to remain or leave the European Union. Because of this, the market will move on that announcement and of course various rumors. It will be a very difficult market to deal with, but likely will be a “risk on/risk off” type situation.
WTI Crude Oil
The WTI Crude Oil markets rose slightly during the course of the session on Thursday, but as you can see is essentially consolidating. However, the US dollar should lose quite a bit of strength due to people running into the Euro and the Pound, if the British choose to stay in the European Union. Also, it would get rid of one of the biggest questions in the financial markets are now, and of course stability tends to breed bullishness.
USD/JPY
The USD/JPY pair rose during the course of the day on Thursday, mainly in reaction to a “risk on” type of environment. However, the 106 level did of course offer a bit of resistance as it was previously supportive. Having said that, we can break above the 106 level, it’s very likely that call buyers will be encouraged. At the moment, looks as if the 104 level is supportive.
DAX spikes
The German index spiked all the way towards the €10,400 level, but turned right back around and formed a massive shooting star during the day. With this, it shows that rumors will continue to push this market higher as the suggestion that the United Kingdom is staying in the European Union. Because of this, a “remain” vote will more than likely encourage call buyers. On the other hand, if we get some type of “leave” result this would send DAX put buyers into a frenzy.
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