Article / 22 June 2016 at 23:00 GMT

US Market Wrap: On the cusp of the Brexit vote

FX Trade Strategist /


  • Japan: Foreign Investment 1950 GMT   
US data released

  • Existing Home Sales-May (Actual 5.53 million vs forecast 5.54 million) 
  • Housing Price Index-April (Actual 0.2% vs. previous 0.8%) 
  • EIA Crude Stocks Change (Actual minus 0.917 million barrels vs. forecast minus 1.67 m/b) 

FX markets were a tad noisy with quite a bit of chop, albeit in fairly narrow ranges but when the buzzer sounded (figuratively) to end the day, the “Big 3” (EUR, GBP and JPY) were at, or close to, their opening levels.  

Sterling has managed to hang on to all of the gains attained since touching 1.4008 last Thursday which suggests a “Bremain” win is the expected outcome for Thursday’s vote.

The “Big 3” may have stayed closed to home but USDCAD didn’t. USDCAD climbed steadily throughout the session on falling oil prices. The  Energy Information Administration reported a decline in the weekly data but less than what was expected. WTI plunged to $48.37/b from $50.35/b. Prices rebounded but they could not crack $49.25/b. Brexit concerns got a lot of the blame for the move, as well.

Federal Reserve Chair Janet Yellen’s second day of testimony didn’t find as friendly an audience as yesterday. The Wall Street Journal reports that the Chairman of the House Financial Services Committee was critical of the Fed's “data dependent” policy”. Nevertheless, Yellen did not deviate from yesterday’s economic policy message.

US equity market action was rather sedate and all three indices finished slightly in the red.

 Calm before the storm? Voting for the UK referendum on EU membership starts today, which should ensure a quiet trading session ahead. Photo: iStock


FX Trading isn't easy and there is no such thing as easy money although TradingFloor contributor, "fxtime" makes it seem so. Read: Are we trading the obvious?

– Edited by Gayle Bryant

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to engage with Saxo Bank's social trading platform.

Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.


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