From the Floor: Yen soars, dollar slides, stocks collapse
- For JPY there's a feeling that some intervention is coming – Hardy
- Dovish Fed sends greenback reeling as yen hits 22-month high
- BoE will leave rates steady and seek to reassure market on Brexit – Hardy
- We've got an almost perfect set up for gold at the moment – Hansen
- CLICK ON THIS LINK FOR A REPLAY OF OUR MORNING CALL
As to the third major central bank meeting inside 24 hours, Hardy expects that the Bank of England's governor Mark Carney will follow his US and Japanese colleagues example and leave rates untouched while issuing reassuring words about steadying the market should British voters decide to opt out of the European Union next week
Source: US Federal Reserve
Meanwhile, as has become the norm in these turbulent days, gold is on a roll, having hit its highest price since 2014, says Ole Hansen, head of commodity strategy at Saxo. "We've still got the Brexit vote to come so there's plenty of uncertainty to support the market over the coming week. In addition to this you've got the yen surge, dovish Fed, falling bond yields and weak stocks, meaning that there's almost a perfect set up for gold at this stage," he says.
Spot gold – the only way seems upwards
Finally, despite today's dollar weakness, WTI crude oil has retraced half of the May supply disruption rally gains. Risk-off sentiment is triggering the reduction of elevated bullish bets. Key support on CLN6 is now at $46.30/barrel followed by $45/b.