Compass Global Markets' Blog

Market Update - 8th June 2017 - UK Elections Could Throw Up Another 'Brexit' Style Event

Posted by Patrick Downes on June 8, 2017 at 8:38 AM

Aussie GDP figures came in on expectations yesterday and resulted in a nice little jump higher for the Aussie dollar particularly against the EURO and USD. The sharp move higher on the announcement at 11.30am was probably as a result of quite a few economists and traders going into the data announcement quite bearish with fears we might see another contraction in GDP. However that obviously didn't eventuate and traders were forced to quickly cut their short positions (were by a trader is selling AUD and buying a foreign currency).

Ahead today is more local economic data - this time Aussie trade balance figures and Chinese trade balance figures due for release around the middle of the day. However the big likely market mover is U.K elections tonight, with incumbent Theresa May taking on Jeremy Corbyn and a raft of also-ran's. What makes this election so important is because it really does throw Brexit up in the air once again if Corbyn topples May. Tonight could certainly be another Brexit type event should May lose, but we'll have to wait and see. I suspect we'll have an answer by tomorrow afternoon.

DATA RELEASES TODAY:

AUD – Quarterly GDP Figures at 11.30am

AUD EXCHANGE RATES:

AUD/USD – 0.7483

AUD/GBP – 0.5791

AUD/EUR – 0.6631

AUD/NZD – 1.0431

AUD/JPY – 81.901

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Report, Market

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