Good morning, let me recap what happened yesterday in the
markets. The Sterling Pound fell even more against the USD and the EUR. The
growing uncertainty after the Brexit decision is hitting the markets. In addition,
Cameron’s resignation doesn´t help at all, at least he will be in the office
till October. Chancellor George Osborne said this morning that the UK would
have to cut spending and raise taxes.
Europe’s politicians are working hard to address the current
situation. By the way, the conservative party (PP) has won most seats in
Spain's parliamentary election but is short of a majority, which adds more
political uncertainty. Italy is using Brexit as a pretext to unleash a €40
billion ($44 billion) bailout of its insolvent banks. All of these issues are
reflected in the EUR/USD.
GBP/USD Futures
GBP/USD Futures,
Monthly, 27/06/2016
EUR/GBP
EUR/USD Futures
EUR/USD Future,
Daily, 27/06/2016
Economic
calendar
The most important
macroeconomic release of
the week is the US GDP this afternoon (13:30 UK time). It’s expected to be
around 1%. After that. At 15:00 we will see the Consumer Confidence, I expect
it strong.
Wednesday:
· -German
CPI
· -US
Pending Home Sales
Thursday:
· -German
Retail Sales
· -German
Unemployment
· - UK
GDP
· -European
CPI
· -Canadian
GDP
Friday:
· -China
PMI
· - -German
Manufacturing PMI
· - UK
Manufacturing PMI
· -US
ISM Manufaturing PMI
What I expect?
It’s only my
opinion, don´t take it as a financial advice. I expect a little rebound today,
but I think the markets will look for lows until the negotiations and the
economic measures are clear.