Daily Economic Digest from Forex.ee

Daily Digest of economic Forex.ee

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Friday, June 9

So, UK election ended and
the result of this event was not so optimistic for the pound as
United Kingdom voted in favor of "chaos." It is according to final results
vote, the Conservatives have failed to gain a majority of seats in the House of Commons, and
This means that now the UK will face a "suspended" by Parliament. FROM
on the other hand, "hung" parliament, will likely lead to a softer
UK exit from the euro zone that have a positive impact on the pound in
the medium term. Nevertheless, at the moment the current political
The situation in the UK will continue to create serious uncertainty until
not formed a new government, which in turn has a major
pressure per pound. In view of recent developments pair GBP / USD came under a massive wave of sales, while losing more than 2.5
cents, down from the 1.2950 level to the 1.2700 mark. The pair continues
remain under pressure, as was again under bearish pressure on
background of the opening of European markets by upgrading their 2-month low at around
1.2663. Now the attention of investors shifting towards a report from the UK
on volume of production in manufacturing, however, any sharp
pair movement will be limited, as the markets continue to discuss recent
developments.

Couple EUR / USD We remain under pressure today,
trading near the 1.1200 level against the background of yesterday's meeting of the ECB. like
expected, the regulator has left its interest rate unchanged, but revised
its forecasts for inflation decline in the coming years. Furthermore,
ECB President M.Dragi also aggravated the situation during a press conference,
He confirmed that the bank is ready to soften its monetary policy in the case of
needed. On the other hand, the pair had some positive effects
the outcome of elections in the UK, which showed that the Conservatives will not be able
take an absolute majority of seats in Parliament, which means that
Britain will not go on strict measures in the negotiations on Breksitu on which
insisted that the current Prime Minister of Great Britain T.Mey. Such an outcome is
positive result for Brussels. At present, the list of economic events
It remains relatively empty, except for a few minor releases
the US economy, so the pair will continue to follow the mood of the world
financial market that emerged against the background of recent events.

Couple USD / JPY It traded with a raised
attitude at the end of this week, crossing the psychological level of 110.00,
as US bulls continue to hold control of the pair in the background
a sharp drop in GBP / USD, which was the result of the election results
In Great Britain. Moreover, it seems that the situation in the market after the British elections
gradually begins to stabilize, thus contributing to a drop in interest
traders to the safe haven. Further, today the list of economic events is not
investors bring anything worthwhile, so further developments around
the political situation in the UK and a predisposition to more traders
risky assets will continue to set the vector pair.

Couple NZD / USD today also showed
rather volatile trading, updating nightly lows at around 0.7192. That
less than a couple managed to recover most of its early losses and rise
to the level of 0.7210, as investors considered the decision of the UK
abandon hard Breksita as a positive event. Moreover, the report
on China's inflation, which was slightly higher than market expectations, also failed
support the couple during the Asian session. However, further gains couples
It looks unlikely in the face of a stronger US dollar and ongoing
lower oil prices. Nothing important data scheduled in the calendar in
later this week, so the general market sentiment will remain the key driver
factor for the pair.

Main events
of the day:

The volume of production in manufacturing UK
- 11.30 (GMT +3)

Employment change in Canada - 15.30 (GMT +3)

levels
Support and resistance for the major currency pairs:

EURUSD P.
1.1150 C 1.1300

USDJPY P.
108.91 110.93 C.

GBPUSD P.
1.2874 C 1.3014

USDCHF P.
0.9598 C 0.9734

AUDUSD 0.7511 P.
S. 0.7571

NZDUSD P.
0.7172 C 0.7242

USDCAD P.
1.3466 C 1.3540

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