What Safe Haven Asset/Currencies Are and the Role They played During the Brexit

A safe haven currency is a currency that investors and traders believe is stable enough to keep its value compared to other currencies in times of economic uncertainty, inflation and other forms of crisis.

However, what are considered safe havens alter over time as market conditions change, and what appears to be a safe investment in one down market could be a disastrous investment in another down market.

Generally, safe haven currencies are from countries that have very stable economies, so the currency does not change much in value.

George Soros Warns That Brexit Will Make UK Citizens Poor

My 60 years of experience tells me the pound will plummet, along with your living standards. The only winners will be speculators .

David Cameron, along with the Treasury, the Bank of England, the International Monetary Fund and others have been attacked by the leave campaign for exaggerating the economic risks of Brexit. This criticism has been widely accepted by the British media and many financial analysts. As a result, British voters are now grossly underestimating the true costs of leaving.

Too many believe that a vote to leave the EU will have no effect on their personal financial position. This is wishful thinking. It would have at least one very clear and immediate effect that will touch every household: the value of the pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs.

Meaning of The ''Fed Dot Plot''

U.S. Federal Reserve policy is critical to all of the global financial markets, so any insight into what the Fed is thinking always gains a great deal of attention from investors. That’s why the Fed “dot plot” has become one of the most-watched news releases during the course of the past year.

The dot plot, which is published after each Fed meeting, shows the projections of the 17 members of the Federal Open Market Committee (the rate-setting body within the Fed). Each dot represents a member’s view on where the  fed funds rate should be at the end of the various calendar years shown, as well as the “long run” – the peak for the fed funds rate once the Fed has finished tightening(or “normalizing” ) policy from its current ultra-low levels. The dot plot represents the Fed’s ongoing efforts to become more transparent with respect to its policies.

Pay Attention to These Words and Dots: Fed Decision-Day Guide

·         Clues on unemployment and Brexit views may be important

·         Dot-plot update may reflect slower rate hikes in 2017, 2018

Chair Janet Yellen’s Federal Reserve wraps up a two-day meeting on Wednesday in Washington. Officials are expected to debate whether the economy can handle another interest-rate increase after they hiked in December for the first time in almost a decade.

The Federal Open Market Committee’s deliberations come as the central bank receives conflicting signals about the economy’s strength: A comprehensively weak May jobs report contrasts with strong spending. Economists and investors don’t expect a rate increase this week, and will look to the Fed’s statement, quarterly economic projections and Yellen’s press conference for hints at future timing and pace.

Here’s what to watch for when the Fed releases its statement and economic projections at 19:00 GMT and Yellen speaks at 19:30 GMT in Washington.

UK CPI Inflation

In a few minute, the UK CPI (Consumer Price Index) will be released (at 9:30 GMT)which is the most important inflation data used  by the Central Bank as it's inflation target. CPI gives detailed information about a majority of the overall inflation which is important to currency valuation because rising prices lead the central bank to raise interest rate out of respect for their inflation containment mandate. The data is released by the Office for National Statistics (www.ons.gov.uk).

Yellen Says Fed Still Wants to Raise Rates But Signals No Hurry

Federal Reserve Chair Janet Yellen on Monday said US economy will continue to improve and she expects that further gradual increases in the federal funds rate will probably be appropriate to best promote the FOMC's goals of maximum employment and price stability.

Pound Under Pressure

The Pound fell against all of its market peers after the survey which showed more Britons preferring to leave the European Union. The GBP/USD pair lost all of its Friday gains reaching a three week low of 1.4353.

EUR/USD Stronger On Poor NFP Result

U.S. unemployment rate fell to 4.7%, the lowest since 2007, but the economy added only 38,000 jobs in May.

LEVELS TO WATCH
The pair is now advancing to 1.1324, and a break above 1.1346 could open the door to 1.1446 in the days ahead. (High May 11)

What To Expect From Non Farm Payrolls Today at 13:30 GMT

U.S. stock index futures indicated a flat open on Friday morning as traders eyed the release of a host of data.

Nonfarm payrolls, the unemployment rate, average hourly wages and the U.S trade deficit are all set to come out at 13:30 GMT non-manufacturing data and factory orders are set to be released at 15:00 GMT.

OPEC Keeps Status Quo After Failing to Agree on Output Cap

·         Oil extends slide as members decide against production ceiling

·         Nigeria’s Mohammed Barkindo is appointed as secretary-general

  

OPEC will stick to its policy of unfettered oil production after members failed to agree on a new output ceiling. Crude extended its decline in London.

The meeting didn’t produce a supply accord but did reach consensus on appointing Nigeria’s candidate as new secretary-general, Sudirman Said, Indonesia’s energy minister, said in Vienna. The Organization of Petroleum Exporting Countries’ de facto leader, Saudi Arabia, had previously discussed restoring a production target scrapped in December, according to delegates familiar with the matter.

ECB Leaves Interest Rate Unchanged at 0.0%

The European Central Bank decided that the interest rate on the main refinancing operations will remain unchanged at 0.00%.