Risk off trade on the back of growing Brexit risks saw global stock markets fall overnight. US S&P fell -0.8% at 2079 and Eurostoxx 50 ended down -1.98% at 2853.
Australian markets were closed for Queens birthday but futures indicate a fall of over 2% at the open.
AUD/USD was relatively stable in a 0.7350-0.7400 range with most of the action on the British Pound.
Gold’s surge continued on the Brexit concerns rising above $1280 overnight to $1287 highs before settling at $1283. $1300oz is the key resistance from April.
Wild swings in the GBP/USD were seen after fresh multimonth lows of 1.4115 and GBP/JPY broke 3 year lows under Y150. Rumors that new poll showed the race tightening saw the GBP/USD pop to 1.43. The actual ICM Brexit poll showed a 6 point lead for the leave team and this saw Pound sellers reenter the market and we have stabilized above the 1.4200 figure.
OIL/USD fell back through $50 a barrel on Friday and further selling Monday to $48.50 lows has led to concerns the recent rally has run out of steam.
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