By IFCMarkets

US dollar index has been advancing for the 2nd straight day on weaker British pound and euro as possibility of Brexit on referendum on June 23 rose. After yet another opinion poll showed the chances of Brexit are 53%. US currency slightly retreated on Monday as the chances of the July Fed rate hike fell below 20% which is the lowest this year. The chances for the rate hike on June 15 are estimated at just 3%. US stock market indices edged lower on Thursday and Friday on relatively negative data. Wholesales stockpiles rose in April while the Michigan University consumer confidence index dived in June. S&P 500 ended last week 0.1% lower while Dow added 0.3%. No significant economic data are expected in US on Monday.

Euro slightly strengthened on Monday amid lower chances for the US Fed rate hike in the coming months. Moreover, market participant were positive about the ECB policymakers speeches in Brussels and Estonia. The pan-European FTSEurofirst 300 and STOXX Europe 600 indices went on looking down and slumped 1.5% on Monday to their 2-month lows. This week the Bank of England and Swiss National Bank meetings will take place which may affect the respective national currencies. Moreover, many pieces of significant economic news will come out in Eurozone this week except for Monday.

Nikkei edged lower on Monday for the 3rd straight time and hit a 5-week low partly thanks to much stronger yen. Stronger national currency is considered to make Japanese companies less competitive in the global markets. Yen strengthened to the 3-year high to euro and to 6-week high to the US dollar. Investors now consider is as safe-haven asset amid higher risks of Brexit and delay in Fed interest rate hike.

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