Daily Market Report 24/05/16


The Pound slipped yesterday after gaining over 1 percent against the dollar last week as investors, still worried that a looming June 23 referendum could see Britain’s vote to leave the European Union, moved away from riskier assets.

The currency showed little reaction to warnings from Prime Minister David Cameron and finance minister George Osborne that a vote to leave the EU could push Britain into a year-long recession and cost at least half a million jobs. David Cameron said yesterday that "leaving the European Union would be economic self-destruction for Britain, shattering stability" having presented a finance ministry report warning of recession, a tumble in the pound, and half a million job losses. Cameron and Osborne have also warned that households would be hurt by a fall in the value of their homes and face expensive foreign holidays if they voted "Out".


The U.S. dollar gained late  yesterday after Federal Reserve officials made hawkish remarks on monetary policy. San Francisco Fed President John Williams said yesterday that the central bank would probably tighten policy a bit quicker in 2017 than this year, by perhaps one or two more interest rate hikes. On Monday, St. Louis Fed President James Bullard said keeping U.S. interest rates too low for too long could cause financial instability and that stronger market expectations for a rate rise were "probably good."

Key Announcements

10:00 – EUR: German ZEW economic sentiment forecast at 23.4 against previous of 21.5

10:00 - GBP: UK Inflation Report Hearings

15:00- USD: New Home Sales (MoM) (Apr) Expected to rise to 0.523M from 0.511M