British pound remains under pressure, holding near two-month low against the dollar and near almost three-year low against yen on rising worries that Great Britain may leave the European Union in a referendum less than ten days away.
Uncertainty rises as the recent polls show that ‘Leave’ camp is gaining momentum and increasing nervousness in the markets that resulted in sterling volatility reaching record highs.
Cable trades on Tuesday near Monday’s fresh low at 1.4113, after short-lived recovery attempts, with technical studies showing renewed downside pressure that may result in slide to strong 1.4000 support in the near-term.

Safe-haven Japanese yen remains well supported on mounting Brexit fears, trading just above Monday’s low at 105.72, with key support at 105.53, being in near-term focus.
Japanese Finance Minister expressed concerns about renewed strength of the yen and issued a warning, saying that firm respond could be expected if rapid and speculative moves persist in the foreign exchange markets.
Yen turns near-term focus towards Bank of Japan’s policy meeting, scheduled for 15-16 June, with prevailing expectations for the BOJ to hold off from any additional monetary easing.
The Euro came under pressure on in early Tuesday’s trading, after recovery attempts on Monday stalled at strong 1.1300 barrier. Absence of economic releases from the EU today and mixed technicals, may keep the single currency in extended consolidation in the near-term.
Gold eased from fresh one-month high at $1287 that was reached on strong demand for safe-haven instruments amid rising uncertainty about results of Brexit referendum, but the price stays near fresh high.
Investors decided to lock profits ahead of Fed’s meeting this week, when they will have more clues about near-term actions. However, gold maintains strong bullish momentum, as rising uncertainty in the markets prompts investors to turn into safe-haven instruments in risk-aversion, with additional strong boost expected if Britain votes to leave the union that would push Europe back into recession.
Crude oil futures remain under pressure in the near-term, extending easing from fresh multi-month high at $51.65, unable to sustain gains above psychological $50 level. Oil price dipped near$48 per barrel, pressure by concerns of global growth and results of Brexit referendum.
A number of analysts sees recent rise of oil price connected with supply issues and not to rising demand for oil on strengthening global economy that may put oil price under additional pressure.

Lower oil prices also pushed Canadian dollar to fresh one-week lows against the greenback which broke below some important technical supports. USDCAD returned above 1.2800 barrier, after hitting fresh five-week low at 1.2625 last week. Increasing risk aversion and concerns about Brexit may further weaken Loonie, to depreciate towards psychological 1.3000 support.

Today’s highlights

Batch of data from the UK are the highlight of the European session. Focus is on inflation numbers for May, which are expected to tick higher, according to forecast at 0.4% vs 0.3% in April.
Core CPI is also forecasted higher, with consensus for May at 1.4% against 1.3% in the month of April.
Data are due at 08:30 GMT.
From the other releases, European Industrial Production is forecasted fro strong recovery, according to April’s forecast at 0.7% vs negative release of -0.8% in March.
US Retails Sales are the top release of the American session, due at 12:30 GMT and forecasted to drop in May. Forecast shows 0.4% against 0.8% of Retail Sales in April and against 1.3% of April’s Core Retail Sales.

Important levels

EURUSD eases on Tuesday after recovery attempts were capped at strong 1.1300 barrier on Monday. Technicals show mixed setup, with breakpoints at 1.1300/44 at the upside and 1.1230/17 on the downside, break of which is needed to signal fresh direction.

GBPUSD is back to full bearish mode after Monday’s bounce proved to be short-lived, stalling at 1.4325. Immediate support at 1.4113 is under pressure, with fresh bearish extension seen towards next support at 1.4070 and key 1.4000 support.
Initial resistance lies at 1.4215, followed by 1.4276 and 1.4325 trigger, above which to expect extended correction.
Technical studies maintain firm bearish tone and keep near-term focus at the downside.

USDCAD extends bounce off fresh low at 1.2625 and establishes above 1.28 handle, after rally closed above daily cloud base at 1.2787. Further recovery would extend towards next strong barriers at 1.2887 and 1.2919, with psychological 1.3000 barrier in near-term focus.
Initial support lies at 1.2806, ahead of strong 1.2787 support, which is expected to hold the downside attempts.
US CRUDE OIL is extending pullback from $51.65 peak for the fourth consecutive day. Key short-term supports at $47.75/25 are coming in near-term focus, with break lower needed to signal deeper correction and expose supports at $46.25 and $45.32.
Resistances lay at $48.58; $49.26 and $50.00., Market Analysis