Asian Session Forex Recap – June 23, 2016

With only a few hours before the EU referendum vote, forex traders are scrambling to make their last-minute bets. Here are the market-movers you need to know about.

Major Events:

Countdown to the EU referendum vote – The U.K.’s EU referendum vote is only a few hours away and forex market players are placing in their last-minute bets. As I mentioned in my U.S. session recap, the pound got a boost following the release of new poll results reflecting a lead for “Bremain.” And, with no other major economic report on tap, the risk appetite spread on to most of the other high-yielding bets.

Japan’s manufacturing PMI – Japan’s initial manufacturing PMI came in at 47.7 in May, lower than the expected 47.8 uptick and April’s 48.2 figure. The details weren’t any more optimistic either. 8 out of 11 components deteriorated further, with 5 of them declining at a faster rate. Not a good sign for the earliest indicator available on the manufacturing sector!

Oil inches higher – Oil prices slipped a bit after the US Energy Information Administration (EIA)’s stockpiles report showed only a modest decrease in crude stocks and a pop in gasoline stocks.

The tides turned, however, when Saudi Arabia Oil Minister Khalid-Al-Falih was quoted in a newspaper interview saying that the oil supply glut is over and that “the oversupply has disappeared.” Whether it’s true or not, the optimism was enough to boost oil prices. The U.S. crude oil is 0.63% higher at $49.44 while Brent oil is up by 0.56% to $50.16.

Major Market Movers:

GBP –The pound was king of pips during the Asian session thanks to more reports reflecting a possible lead for a Bremain.

GBP/USD shot up by 95 pips (+0.67%) to trade at the 1.4800 levels while GBP/JPY is up by 122 pips (+0.79%) and EUR/GBP is down by 26 pips (-0.34%).

JPY – The weaker-than-expected PMI from Japan added up to the risk-friendly trading environment to weigh on the yen.

USD/JPY is up by 14 pips (+0.13%), EUR/JPY is up by 51 pips (+0.43%), and AUD/JPY is up by 25 pips (+0.32%).

Watch Out For:

  • 8:00 am GMT: French flash manufacturing PMI (48.8 expected vs. 48.4 previous)
  • 8:00 am GMT: French services PMI (51.5 expected vs. 51.6 previous)
  • 8:30 am GMT: German flash manufacturing PMI (expected to remain at 52.1)
  • 8:30 am GMT: German flash services PMI (55.0 expected vs. 55.2 previous)
  • 9:00 am GMT: Euro Zone flash manufacturing PMI (51.4 expected vs. 51.5 previous)
  • 9:00 am GMT: Euro Zone flash services PMI (53.2 expected vs. 53.3 previous)
  • U.K. to start with EU referendum

See more:

U.S. Session Forex Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!