This FOMC analysis will be going viral

Traders are actively waiting for the FOMC meeting statement and the announcement from the FED about their long avaited rate hike, while the risk element has been increasing int the market.

As this FOMC analysis is going viral, traders look more into the Britain’s Brexit referendum on June the 23rd. The biggest concern is actually the instability this referendum has created for the future of the European Union.

Attention to the detail, the best performing currency so far has been the Swiss Frank. Since January 15 of 2015 the CHF has became a forgotton currency. However, this has been mostly due to non-stop SNB intervention in the market. The Swiss National Bank has been selling their CHF reserves to keep up the unofficial EURCHF peg at 1.10 level. Now, as the EU future is under question, the SNB can not sell enough CHF reserves, thus the CHF is expected to be appreciating. We already commented on the 8th of June to short EURCHF from 1.10 level or as close to it as possible which has already given us over 160 pips of profit.

What is next if, you are wondering?

We are expecting EURCHF pair to head towards 1.05 as its immediate target.

But, CHF is not the only major trading instrument at the moment, traders should be considering Gold and the Japanese Yen as well as these two instruments are also safe heaven assets.

For Gold, the valuable metal should be appreciating from 1248 – 1268 level while its targets remain at 1300 and 1341 levels consecutively.

USDJPY, meanwhile is expected to have strong bulls from 103.87 level while bears are expected to gain their momentum from 108.80 level and higher. But don’t let these figures change the big picture. The Japanese Yen is often manipulated by the Bank of Japan thanks to the long lasting Abenomics. So, it is likely that BoJ will be intervening the Yen pairs as of the next week right after the UK’s Brexit voting. Hence, you should be cautious with USDJPY and EURJPY pairs.

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In the meantime, make sure to share FOMC analysis video and contribute to its long term outreach.

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