Broker Arena

June 28, 2016

The lull after the worst scenario for UK spins off uncertainty: Investors extend safe plays.

The lull after the worst scenario for UK spins off uncertainty: Investors extend safe plays.

Pound fell to 31-year low against the dollar during Monday trading session due to the concerns over the possible consequences of the British decision to leave EU.
UK currency touched its lowest level since mid-1985 year-$ of 1.3151, dropping 11.5 percent compared with the close of June 23 when a referendum on Britain’s membership in the EU took place. Analysts predict pound will extend its record weakening which is already supposed to be the worst performer in this year. A drop by 3.69 percent to the greenback to 1.3194 level failed to produce bidding backlash despite assurances from British Finance Minister George Osborne that the fifth largest economy in the world will be able to cope with the upcoming challenges.

The euro extends its weakness falling 1.07% to $1.0996 with a session low at $1,0971 level. Nevertheless, the common currency was trading slightly above Friday minimum of $1.0909.
Japanese Yen strengthened its position amid increased demand for heaven assets, although the growth was restricted by the expectations that BoJ may intervene to curb the uncontrollable rally of the national currency. The dollar slipped 0.51% to 101.67 yen, holding above Friday lows of two and half year near 99 yen.
The dollar index, which tracks the U.S. currency against a basket of six other major competitors climbed 1.10 percent to 96.494 points.

Gold traded in the expansionary zone on Monday as the lack of positive or negative news spun off uncertainty forcing investors to seek for more safety. The commodity futures for August delivery traded at a price of $1,328.70 per troy ounce, rising 0.48%. Prices peaked at 1.339,30 with a potential resistance point at $1.355.60.

No votes yet.
Please wait...
0 likes Market notes
Share: / / /

Leave a Reply

Explore sections
Top 10 Forex Brokers
  1. Pepperstone
    Rating: 5.0. From 1 vote.
  2. Tickmill UK
    Rating: 5.0. From 1 vote.
  3. FX Pro
    Rating: 5.0. From 1 vote.

Subscribe to get our Premium ideas for trading!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Broker Arena will use the information you provide on this form to be in touch with you and to provide updates and marketing.