There was at last a correction of the markets on Thursday: Brent oil returned from 52.80 to 51.80 as traders took profit on their bullish positions, while the US dollar index recovered from 93.50 to 94.00. American unemployment claims came out better than expected. Preliminary consumer sentiment data for June is due at 14:00 GMT om Friday. The market’s risk appetite declined. Global stocks declined for the first time in 6 days. One of the reasons is the upcoming Brexit referendum, which will take place on June 23. There was also news that billionaire investor George Soros sold stocks and bought gold preparing for difficult times for the world’s economy.
Japanese yen strengthened as traders increased demand for the safe haven assets. USD/JPY declined, but is still trying to stick to 106.55. A daily close below this mark will open the way down to 106.00 (200-week MA) and 105.55 (May low). All in all, 200-week MA should slow down the pair’s decline. Resistance is at 107.65 and 108.90. For EUR/JPY a close below 120.80 will be a long-term bearish signal. AUD/USD recoiled down from the 55-day MA in the 0.7475 and may be subject to a deeper correction down (targets: 0.7400, 0.7380, 0.7300).
EUR/USD erased the work of the bulls during the past several days and fell to this week’s low at 1.1305. The ECB's President Mario Draghi has reiterated the need to advance in structural reforms in the euro region and underlined that the central bank will not allow consumer prices to remain below target for longer than is avoidable. We may see more of correction down with the pair visiting 1.1215. Resistance is at 1.1415 and 1.1465. German Bundesbank President Jens Weidmann will speak at 07:00 GMT. GBP/USD keeps trading in a broad range between 1.4700 and 1.4350. We expect the pair to continue fluctuating around 1.4500.