European majors open the week sharply higher as latest Brexit polls in UK showed that support has swung back to the "remain" camp. A poll by Survation for the Mail on Sunday showed 45% supporting "remain" with EU and 42% supporting "leave". A YouGov survey for the Sunday Times showed 44% supporting "remain" and 43% supporting leave. An Opinium poll showed a tie of 44% each. The poll results showed and turn in the momentum after the tragic murder of pro-EU British MP Jo Cox. Campaigns of both camps was brought to a halt by the incident but resumed on Sunday. GBP/USD is back trading at 1.46 after diving to as low as 1.4011 last week. EUR/USD is up at 1.136 comparing to last week's low of 1.1130. Sterling is also having an upper hand against Euro with EUR/GBP at 0.7790 comparing to last week's high of 0.7993. Asian stocks also respond positively with Nikkei trading up 2.2% at the time of writing.There were a chorus of EU officials against Brexit ahead of the referendum on June 23 in UK. German finance minister Wolfgang Schauble said that "I hope and believe that the British will ultimately decide against Brexit. The withdrawal of Britain would be a heavy loss for Europe.". European Council President Donal Tusk said that Brexit is "dangerous" because "no one can foresee what the long-term consequences would be". And Tusk warned that "as a historian, I fear that Brexit could be the beginning of the destruction of not only the EU, but also of Western political civilization".The EU referendum in UK on June 23, Thursday is certainly the main event of the week. A part from that, Fed chair Janet Yellen will testify before Congress on Tuesday and Wednesday. Eurozone will also release PMIs and German ZEW and Ifo. Here are some highlights of the week:
- Monday: UK Rightmove house price; Japan trade balance; German PPI; Canada wholesale sales
- Tuesday: RBA minutes, Australia house price index; Japan all industries activity; Swiss trade balance; German ZEW; UK public sector net borrowing; Fed chair Yellen testimony.
- Wednesday: Canada retail sales; Eurozone consumer confidence; US existing home sales, Fed chair Yellen testimony
- Thursday: Japan manufacturing PMI; Eurozone PMIs; US jobless claims, new home sales, leading indicator
- Friday: German Ifo; US durable goods orders