Article Highlights

  • ICM poll: 42% of Britons want to stay in the EU
  • U.S. flash manu PMI fell from 52.4 to 51.0 vs. 52.3 forecast
  • IEA: Oil market rebalancing will take place in 2017
  • Australian CB leading index down by 0.2%, +0.3% previous
Partner Center Find a Broker

The lack of top-tier economic releases left dollar pairs to trade all over the place, as forex traders reacted to country-specific news.

Major Events:

More Brexit-related updates – Just as in the previous trading session, Brexit-related headlines continued to influence forex price action throughout the New York session. This time around, the pound drew some relief from the ICM poll results, which revealed that 42% of Britons want to stay in the U.K. while 40% want to leave and the rest were undecided.

U.K. Prime Minister Cameron voiced out his support for the EU deal once more, saying that this proposal could deliver concrete reforms in most areas. Word through Downing Street, however, is that some members of Cameron’s business advisory group refused to sign the letter of endorsement for this EU deal. Wanna find out what that’s all about? Read Forex Gump’s latest Brexit update right here.

Positive reports on oil – Crude oil staged a pretty solid rebound when the International Energy Agency estimated that the market will eventually rebalance itself by next year. Although the agency also predicted that the U.S. and Iran will keep on ramping up their output until 2021, they also projected that global oil supply will increase by only 4.1 million barrels per day until then compared to the rise of 11 million barrels per day from 2009 to 2015.

WTI crude oil advanced to $31.48/barrel while Brent crude oil rebounded to $34.48/barrel upon seeing the report. Still, the S&P decided to dole out another round of downgrades for energy companies namely BP, Total, and Standard Oil as the supply glut is currently weighing on profitability.

Major Currency Movers:

GBP – The British pound managed to make a quick bounce when some surveys suggested that majority of Britons still want to stay in the U.K. and forex traders booked profits off their earlier short positions.

GBP/USD rallied from its 1.4046 lows to the 1.4150 minor psychological mark, GBP/JPY bounced off the 159.10 area to retest the 160.00 handle, EUR/GBP retreated to a low of .7780 before resuming its climb to .7800, and GBP/AUD found support at the 1.9500 mark.

Commodity currencies – The comdolls cheered the positive news in the oil arena, with the Loonie leading the gains. USD/CAD dipped to a low of 1.3659 after trading around 1.3750, CAD/JPY pulled up to a high of 82.78, and GBP/CAD broke to a new low of 1.9264.

AUD/USD carried on with its climb and came within a few pips shy of .7250, AUD/JPY bounced up to the 82.00 handle, NZD/USD advanced to a high of .6725, and NZD/JPY popped up to a high of 76.11.

See also:

Asian Session Recap

London Session 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!