Daily Outlook

UK is likely to remain in the EU, with latest polls and result indicating Vote to Remain has an edge. Results will come in steps throughout the day. Brexit is still possible, with SkyNews reporting Sunderland voted to leave, with extent of win much more than expected. In a low liquidity market, the GBPUSD has swinged 7cents from 1.50 high to 1.43 low this morning. Bookies have also adjusted their Bremain odds higher. Final declaration is expected to be called at Friday UK breakfast time. Throughout Asian market, we will receive results, scares of Brexit has the potential for flash crash.

Risk proxies have been well supported overnight with GBP/JPY, the barometer for Brexit, continue rising 1.2%; a 6.75% rise this week. The Australian Dollar has benefited from risk sentiment, rising to 0.7648 high, a rise of 3.2% this week. The ASX200 is expected to bid on Remain momentum, with banks stocks potentially benefiting from removal of uncertainty in funding/lending if Brexit would to happen. Bremain has been the focus this week and this will stabilise the market in the short term.

Next week, markets likely to return their focus to central bank actions. With Brexit uncertainty removed, the US Fed could look to hike interest rate if the employment data due 8^th July proved to be decent, above 200k new jobs. The expectation of US Fed rate hike is at 11% for July.