Currencies
EUR/USD – saw a sharp reversal yesterday due to a correction in the USD across the board. In any case, all eyes are on the Brexit referendum tomorrow, especially since today we have a relatively quiet news-day. Tomorrow we will have some important data out of the Eurozone, but everything will be overshadowed by the referendum.
USD/JPY – moved up to test the resistance but was not able to breach this level. However, we are still trading close to this level, and after the Brexit referendum a lot of uncertainty will be taken off the table, possibly giving some upside here.
GBP/USD – indeed reached the resistance and was able to shortly breach it, but dropped quickly as well, as it appears these levels are still a bit too high before the Brexit referendum. We could see another attempt though, but unless we get some new polls that show a clear lead for the remain camp, it remains questionable we will see a definite breakthrough. With the sharp correction over the last few days, we can expect a very violent and sharp drop in case there will be a Brexit.
Indices
Dollar Index – was able to find support where it was able to do so last week as well and has since then moved up to trade a bit away from this level.
Commodities
Corn – saw the largest drop in 3 years as the weather in large parts of the areas where corn is grown is experiencing rain, which is good for the crop. This in turn leads to an expectation of a better harvest and as such a higher supply, driving prices down.
Gold – broke through the support around the 1276 level and this is has now turned into the nearest resistance level. Gold continues to weaken due to the expectation that there will not be a Brexit, as well as, but less so at the moment, a stronger USD.
Oil – is being pulled in different directions, but has been moving up and breached the 50 level once more. The higher price is a continuation of the improved outlook as the likelihood of a Brexit remains low and also a larger drawdown in the crude stock than was expected. On the other hand, we have a stronger USD and also production in Canada and Nigeria is increasing again. Especially Nigeria is important, as it has been reported that a cease fire has been agreed upon, although this was later denied by both parties.
Stocks
Tesla (NASDAQ:TSLA) – is interested in buying SolarCity in a deal worth estimated $2.6 billion. The company provides solar energy through solar panels. The goal is to build Tesla up as a clean energy powerhouse. Tesla dropped sharply in afterhours trading as most investors are not so thrilled and prefer Tesla to focus on building cars, its core product.