Thursday, June 16, 2016

20160616 FX Daily Report


Highlights of today’s FX Daily as follow:-

·         Dovish tone from Yellen and US Fed Reserve. Sentiment was improving as gradual rate rise path is becoming even more gradual.
·         Brexit will remain at a center stage with just about 7 days to go as questions will be asked about future integrity of EU and Euro itself.
·         USD/JPY recouped back slightly on steadier stock momentum in Europe and Asia, which quelled market’s reaction function to buy the safe haven currency
·         Expect USD/MYR to trade range-bound with strong support at 4.0567. Key watch:- 3YMGS/2YUST differentials, narrowing gap between spot MYR and NDF rate and higher volatility heading into Brexit referendum on 23rd June.

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