There were no major economic releases during the European trading session today and only few releases in the U.S but despite that, volatility was high as the countdown for the U.K referendum has begun.
Mortgage applications in the U.S jumped to 2.9% up from -2.4% previously while the house prices index MoM came out less than expected at 0.2% against 0.6% forecasted.
In addition, U.S Existing Home Sales fell below estimates of 5.55M in May and registered 5.53M only.
In Canada, retail sales in May soared to 0.9% up from -0.8% in April.
Looking at the recent price action, commodity currencies remain steady with Aussie breaking above 0.7500 handle and Kiwi reaching fresh 1-year high at 0.7187 level, while the CAD traded in a choppy way as Oil turned lower following the monthly inventories.
However, all eyes are turned on tomorrow’s Brexit vote and traders may be aware that volatility can reach extreme levels.
Below, the latest poll is showing a slight advantage in favor of the ‘remain’ campaign.
To summarize, traders should focus on two major levels in GBP/USD tomorrow. 1.4760 to the upside and 1.4430 to the downside as a lot of orders are likely to be sitting near those levels for breakout traders.
Polling booths will open at 7 a.m. Thursday London time for EU referendum vote while the final results are expected for Friday morning.
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