Promotional Document Friday, June 17, 2016

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1 Friday, June 17, 2016 Good morning from Hamburg and welcome to our last Daily FX Report of this week. The euro area is still weighing what course of action to take should the U.K. vote next week to leave the European Union,while there is no Plan B, said Jeroen Dijsselbloem, the head of the bloc s finance ministers group. With a week to go before the U.K. holds its referendum on EU membership, polls are showing the Leave campaign ahead. Analysts have warned about potential spillover effects on the euro-area economy. Market Review Fundamental Perspective The yen climbed to its strongest level against the dollar since August 2014 after the Bank of Japan refrained from adding any stimulus that could slow its advance. Japan s currency gained versus all of its 31 major peers after Governor Haruhiko Kuroda and his board opted to continue to gauge the economic impact of their negative interest-rate policy ahead of an election next month. The yen is the best- performing currency globally in June as concern the U.K. will vote next week to leave the European Union fueled demand for haven assets. The dollar extended a decline that has made it the worst- performing developed-market currency this year behind the pound, after Federal Reserve officials suggested the pace of further action will be slower than previously predicted. Pressure has been rising for BOJ s Kuroda to bolster stimulus given tepid economic growth and inflation nowhere near its 2 percent inflation goal. The yen climbed 1.7 percent to per dollar as of 5 p.m. New York time after touching , the strongest level in almost two years. Japan s currency has appreciated more than 15 percent against the greenback this year, outperforming all its developed-market peers. It gained 2 percent to per euro. The S&P 500 Index wiped out all of a 1 percent decline, while futures on the Euro Stoxx 50 gauge advanced amid a steady, day-long easing in bookmakers odds on the U.K. exiting. The pound ended little changed after sliding as much as 1.3 percent. The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, slipped 0.2 percent. While Fed officials still forecast two 25 basis-point rate hikes this year, traders have cut back their bets on an increase, pricing in only a 2 percent chance of a boost in July and less than 40 percent odds of one as late as February West Texas Intermediate crude sank 3.8 percent to $46.21 a barrel, bringing its tumble over six sessions to 9.8 percent on speculation that an easing global supply disruptions will offset a retreat in U.S. oil stockpiles.

2 Daily Technical Analysis CBOT.YM (Daily) After the Dow Jones Industrial Average slumped down below yesterday, bulls came back and bought the index from its low. This strong upward movement is really interesting because also the end of day candlestick shows now a reversal setup. If the stock index will be further traded above the bullish trend line, it might be possible that a new high will be reached. Support & Resistance (Daily) Support Levels around Resistance Levels around

3 EUR/NOK (H4) This exotic currency pair performed very well over the last week, but bulls took first profits as the price exceeded 9.44 NOK. Yesterday s close was slightly below to this important resistance around and it might be possible that this rallye continues, if this level will be broken sustainable. Next resistance would be around 9.5 NOK. Support & Resistance (4 Hours) Support Levels around Resistance Levels around

4 AUD/USD (D1) After bulls bought the Aussie dollar in a strong rally above $0.78, they caught profits and the currency pair plunged down more than 50 percent from its previous upward movement. In the beginning of June the price corrected from its low which might be the first sign for an further reversal movement. Fundamental data should be considered. Support & Resistance (Daily) Support Levels around Resistance Levels around

5 Daily Calendar & Key Events Date Time (GMT) Economic Indicator Last Survey 17/06/ :30 US Housing Starts 1172k 1150k 17/06/ :30 CA CPI Core MoM 0.2% 0.3% If you have any questions, please contact us for further assistance. 24 hours a day: German: h Trading Support: English: Turkish:

6 DISCLAIMER IMPORTANT NOTIFICATION TO BE READ IN CONJUNCTION WITH THE CONTENTS OF THIS PROMOTIONAL DOCUMENT This document Daily FX Report is a promotional document and is created and published by Varengold Bank AG. This Promotional document serves exclusively for information purposes. It is exclusively aimed at German business partners and customers who make their own investment decisions at their own risk notwithstanding the contents of this promotional document. Investment decisions should be made on the basis of a preceding consultation with an independent financial advisor and prospectus, but not on the basis of this promotional document. Depending on the individual investor's investment goals, investment horizon or financial situation, the contents of the present promotional document may not be suitable at all or only in part. This promotional document is not aimed at persons with residence and / or place of business and / or branches abroad, particularly in the United States of America, Canada, Japan or Great Britain. This promotional document is for information only and especially does not constitute a public offer, an advice, recommendation or an invitation to submit an offer for purchase or selling of or subscription to securities or other financial instruments. This Promotional document does not constitute investment advice or investment recommendation. This promotional document does not constitute a financial analysis. Therefore it does not fulfil the legal requirements ensuring the impartiality of financial analyses. This promotional document is not subject to the prohibition of trades before the publication of financial analyses. With this promotional document no individual investment advisory and / or information relationship with Varengold Bank AG is established. All declarations, statements or assessments included in this promotional document are those of this document's author; they do not imperatively correspond to third party statements. Varengold Bank AG has taken the entire information on which the promotional document is based from sources considered serious and reliable, but without verifying the entire information. This is why Varengold Bank AG does not give promises or guarantees regarding precision, completeness or accuracy of the information or opinions included. Varengold Bank AG does not assume any liability for losses and direct or consequential damage caused by the use and / or distribution of this promotional document and / or associated with the use and /or distribution of this promotional document. The contents of the promotional document correspond to the state of information as of the date of its preparation. It may be outdated on account of future developments without this promotional document having been modified. Any complete or partial reproduction or any other usage and /or distribution of this promotional document and / or its content is forbidden and subject to publisher's prior written consent. Warning notice: Trading the foreign exchange market carry a high level of risk and may result in substantial loss in part or all of an investment and is therefore not suitable for every investor. Any past performance is not an indication or guarantee of future performance. Publisher: Varengold Bank AG Grosse Elbstrasse Hamburg, Germany T F