|Fri, June 27, 16|
Friday’s sentiment has been carried into the new week as the FX markets remain center focus. GBPUSD tags 1.31666 handle after David Cameron is not expected to trigger article 50 at EU summit. EURUSD touches 1.097 as a strong DXY is testing the mid-96s. Over in Asia, the USDJPY tests the 101 handle with AUDJPY testing 75 handle probing multi year lows. The market should not overlook Asia in a post Brexit world as CNYUSD continue steep devaluations. We see global turmoil as a two pronged monster. On the backs of a strong dollar, WTI is testing 46 handle as rig counts flat line to ascend as we call for lower prices in a Déjà vu event of technical blended fundamentals. Falling Yields on short term treasuries, Gold advancing, and low beta ratio out preforming as of recent is a market hungry for safe havens. There are 30 companies in the SPX with revenue exposure >10% to the UK. Over the weekend, BOFA downgraded global growth forecasts for 2017. As inequality grows due to monetary policy we see the contagion of political upheaval ie Brexit to continue central banks printing money to protect markets to only increase the wealth of the .01% as inequality grows further leading to more elections Brexit Style referendums across EU and the world. We should not discount a Trump presidency as more uncertainties will plague to the investment world starting in July.