Halister News

(Bloomberg) -- Pound slides against all G-10 peers after weekend polls show that leave EU campaign is in the lead ahead of next week’s referendum; yen surges as investors brace for Fed, BOJ and BOE meetings this week.

• GBP/USD -0.9% to 1.4122 after touching 1.4116
  • Next support at 1.4091, the low on April 14
  • EUR/GBP up 1.1% to 0.7974, with resistance at 0.7994, the high on April 18
  • Implied-realized vol spreads widen across the board as referendum nears; undecided seen key as outcome is too close to call
  • ORB poll on Friday showed 45% favor remaining, 55% want to leave, while YouGov poll released over weekend showed 42% seek to remain, 43% for leave
  • GBP/JPY could break 150 as soon as this week if more polls show the leave camp is in the lead, ING says
  • Vote will keep risk appetite in check over the next 2 weeks: Barclays

• USD/JPY -0.9% to 105.99, eyes 105.55, the low on May 3
  • Fitch cuts Japan’s outlook to negative, citing decreased confidence in govt’s commitment to fiscal consolidation after delaying a planned increase in sales tax
  • Most economists see BOJ expanding stimulus soon, but can’t agree whether it will do so this week or next month; 55% forecast more easing on July 29
  • Eleven out of 40 economists forecast BOJ to ease monetary policy at meeting on June 15-16, according to Bloomberg survey
  • A move below 100 may prompt verbal intervention from the authorities: Nomura

• EUR/USD up 0.2% to 1.1273
  • Resistance at 1.1284, June 10 mid price, while support seen at 1.1220-13, June 2 high and the 100-DMA
  • EUR/GBP rises to highest since April 18 amid concerns about the referendum; interest from leveraged and macro investors to go short on the pound across the board remains intact: traders
  • Short EUR/USD trade of the week at Morgan Stanley
  • Peripherals bonds wider, tracking risk-off sentiment in Asia

• BBDXY little changed at 1,183.27
  • WTI crude futures down ~1.1%
• AUD/USD +0.3% to 0.7300, with activity subdued amid local market holiday