A lively return by UK and US markets, with AUD/USD gains leading the way from late Asia after some strong export results out of Asia. After some consistent pressure on sub .7200 levels, we are now looking to a potential move to .7300 higher up, with the overnight session ahead revealing the latest Q1 GDP results which a number of economists have revised higher.
An even more volatile session for GBP, with EU voting polls again providing much of the volatility. Mixed in with month-end buying interest in EUR/GBP, cable saw either side of 1.4700 and 1.4500, with the lower limit now likely to be extended as the ICM Telegraph phone poll now showing the Brexit voters in the lead. EUR/GBP had tested sub .7600 again before a fresh surge higher, with the above release late in the day pushing the cross rate through the .7645 highs posted Friday and now suggesting a .7700 test.
Canadian GDP data came in softer than expected to send USD/CAD higher again, but resistance ahead of 1.3100 continues to hold off further gains, but late on in London we were testing higher again.
EUR/USD was caught in the cross flow, but looks set to hold inside 1.1100-1.1200 ahead of the ECB on Thursday.
USD/JPY was similarly quiet, but stability in the stock markets aiding support here and in the various cross rates – now with the exception of GBP/JPY.
US personal income in line with expectations, but spending better than expected.