UK Election Begins

The most awaited “Super Thursday” is finally here and everyone is looking forward to the UK General Election and the European Central Bank’s (ECB)policy announcement. Polling booths are open between 06:00 GMT and 21:00 GMT and counting will begin once polls are closed. Sterling reached a two-week high today as British citizens are to make a decision between the Conservative Party and the Labour Party. On Wednesday night, the FTSE 100 closed its session lower by 0.62 percent at 7,478.62 points.

source: Investing.com, BBC News

The Australian dollar continues to edge lower after the release of Australia’s Trade Balance for April which was due earlier at 01:30 GMT today. The AUD/USD pair was thus seen trading at $0.7549, not far from its previous session’s six-week highs of $0.7569. Former FBI chief James Comey will tell Congress today that Trump wanted a “patronage relationship” and asked for his loyalty. Meanwhile, Japan’s GDP grew by 0.3 percent in the first quarter however economists remain positive that its recovery is set to continue.

Another important event forming part of Super Thursday is the European Central Bank’s interest rate decision for June which will be communicated at 11:45 GMT and short-term rates will be set; and eventually affect the euro and european indices. In this regard, the Bank will hold a Press Conference at 12:30 GMT. Elsewhere, Stephen Poloz, the governor of Canada’s Central Bank will deliver a speech at 15:15 GMT and his comments could generate short-term rates for the Canadian Dollar, pay attention to this.

Technical Analysis

EUR/GBP

EUR/GBP

After recording bearish candles on the forex market, the EUR/GBP pair gained momentum as from the 0.86832 level at 16:00 UTC to reach the 0.87139 level, the same hour yesterday. Afterwards, the currency pair was seen much volatile till the end of its session on Wednesday. It started picking up strength as from 01:00 UTC at the 0.86801 level, the highest level for today was at 0.86912 at 05:00 UTC, trade within similar range today.

UKOIL

UKOIL

Wednesday, the Bent crude recorded a huge fall at 15:00 UTC from the $49.73 level to reach the $48.38 level. The commodity reached its lowest level since Monday at the $48.11 level by 19:00 UTC. The U.S. crude inventories rose by 3.3 million barrels in the week ended June 2, below economists’ expectations of 3.4 billion barrels. The asset was quoted at $48.46 level around 06:00, and may gradually rise through today.

DXY

DXY

Yesterday morning, the dollar index was trading on a positive note as it recorded several momentary jumps as from 01:00 UTC and later during the day at 10:00 UTC, it gained hugely as it traded from the 96.55 level to reach its highest level for yesterday at the 96.94 level. This was however, followed by various bearish candles. Today, the index is seen fluctuating on the market and may follow this trend throughout the day.

Things to watch on the market

Tip 1

The GBP/USD, EUR/GBP and the GBP/JPY pairs can be traded with any tools available on our trading platform. The FTSE 100 index is also likely to be impacted after the announcement of UK election results.

 

Tip 2

Currency pairs such as the AUD/USD, EUR/AUD, EUR/JPY and AUD/JPY can be traded with the FX/CFD Tool today. ASX 200 and the Nikkei 225 indices are also likely to be affected through the day.

 

Tip 3

Traders are advised to trade assets such as the EUR/USD, EUR/GBP, EUR/CAD,USD/CAD, DAX, and the FTSE F-APR17 index.