Market Outlook- by-Michael Oyebamiji

There seems to be a lot of uncertainty ahead the “BREXIT” referendum on the 23^rd of June. the latest opinion poll released on Friday evening suggests that many voters might be voting to leave the European Union (EU) and as a result we have seen a massive downside of the financial markets: GBPUSD is trading at 4-week low heading to the support at 1.40 and a break of that support will take us down to the low of the year in February 2016 at 1.38 level. Global stock market is also selling off massively based on the uncertainty surrounding the “BREXIT” referendum. German Dax has fallen from 10,300 level back 9,700 level. Safe heaven assets like gold has rallied massively as investors are looking for safe haven assets to invest.

Looking at the market, from now till the end of the month, it’s going to be a very busy week for the financial market and a very risk one as well. Firstly, most central banks (FED, BoE, Boj) will be holding their press conference to give you an update of their monetary policy decisions as well as interest rate decision. All eyes will be on the Federal Reserve, this is because the FED has been a bit hawkish in their last couple of economic statement, this week, and market will expect FED to keep interest rate unchanged but their tone might give the market another panic.

lastly, the upcoming “BREXIT” Referendum will also create a lot of uncertainty in the market because market is not sure of the outcome of the referendum and as a result we will continue to see so much volatility on Sterling across the board (GBP). I will expect Japanese Yen and Swiss Franc to continue to rally across the board as the market will look to hold safe haven asset going into the “BREXIT” referendum.