27 Jun 2016
The Yen strengthened on the heels of the U.K.’s decision to leave the EU referendum held in Britain earlier today. The Brexit results spooked global stock and currency markets, raising overall concerns and boosting demand for safe haven assets such as the Yen.
A stronger Yen makes commodities priced in the currency relatively more expensive for foreign buyers. This results in a decline in demand for the commodities.
Trading today, the most active rubber futures contract on the Tokyo Commodity Exchange, the November 2016 contract, ended down -1.0 yen to 150.6 yen per kilogram, down from the previous close of 151.6 yen per kilogram.
See: Tocom Rubber Prices June 23 Slightly Down Anticipating UK Referendum
Vibiz Research Center analysts predict that Tocom rubber futures prices will continue to decline, impacted by the strengthening Yen in the wake of the Brexit decision.
Rubber futures on the Tocom exchange will test support levels at 146.00 yen and 141.00 yen. Prices will find resistance at 156.00 and 161.00 yen, if prices reverse into positive territory.
Freddy/VMN/VBN/Analyst-Vibiz Research Center
Editor: Asido Situmorang
http://vibiznews.com/2016/06/24/tocom-rubber-prices-june-24-end-negative-weighed-by-brexit/
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