GBPUSD

Daily Market Comment – Risk appetite hit by China virus fears

Posted on January 21, 2020 at 9:57 am GMT

Yen shines, Asian stocks drop as markets focus on virus outbreak BoJ preserves its limited firepower for a rainy day Busy day ahead: UK data, impeachment, World Economic Forum, and earnings Yen lifted by coronavirus concerns, but is this sustainable? Financial markets traded quietly on Monday, with most currency pairs staying confined in very narrow ranges, as a public holiday in America and the absence of any noteworthy economic data releases in Europe left investors wanting. That all changed overnight [..]

Technical Analysis – GBPUSD’s retracement turns sideways; nears ascending trendline

Posted on January 21, 2020 at 9:22 am GMT

GBPUSD looks to be a bit flat around the 1.3010 level, which is the 38.2% Fibonacci retracement of the up leg from 1.2194 to 1.3514. With the recent lower highs and higher lows, the pair could extend its sideways nature further into the Ichimoku cloud and possibly down towards the lower band of the cloud and the supportive trendline. The technical indicators suggest that directional momentum has evaporated but favor a very short-term negative move. The MACD is below its [..]

Daily Market Comment – Dollar grinds higher, Wall Street hits new records

Posted on January 20, 2020 at 9:43 am GMT

Greenback outperforms as incoming data reaffirm strength of US economy Pound crumbles after soft retail sales enhance case for a BoE rate cut next week Bank of Japan rate decision coming up; supply disruptions boost oil Solid US data lift dollar, catapult US stocks to fresh records The dollar was the star performer in the FX market on Friday, advancing across the board after the latest batch of US data beat forecasts, feeding the narrative that the American economy continues [..]

Week ahead – ECB, BoJ, and BoC meet before crucial European and UK PMIs

Posted on January 17, 2020 at 1:46 pm GMT

It’s going to be an action-packed week, with three major central bank meetings and a storm of economic data likely to keep traders glued to their screens. The European Central Bank is unlikely to signal anything radical, so the euro might be driven mainly by the bloc’s PMI data. The Bank of Japan meeting could also be a snoozer, though there is a case to be made for the Bank of Canada to adopt a more dovish tone. In Britain, [..]

Daily Market Comment – US earnings and data, China GDP propel stocks to fresh highs; dollar nears 8-month high vs yen

Posted on January 17, 2020 at 9:24 am GMT

China reports slowest annual growth in 29 years but signs of rebound at year-end Stocks climb to new records amid ongoing trade optimism and positive earnings String of upbeat data out of the US also boosts risk appetite China’s growth slows in 2019 but recovery could be underway Economic growth in the world’s second largest economy reached the slowest in 29 years according to GDP numbers out of China this morning. GDP expanded by 6.1% for the full year in [..]

Daily Market Comment – Phase One deal brings some cheer despite doubts; dollar drifts lower

Posted on January 16, 2020 at 9:21 am GMT

US and China finally sign ‘phase one’ trade deal; stocks head into record territory Details of deal fail to reassure sceptics about enforcement and target for Chinese purchases Focus to shift to data with US retail sales and Chinese Q4 GDP coming up Markets buoyed as Phase One deal clears final hurdle US President Donald Trump and Chinese Vice Premier Liu He put pen to paper to the long-awaited ‘Phase One’ deal on Wednesday, hoping to draw a line over [..]

Daily Market Comment – Markets turn cautious ahead of trade deal signing as Mnuchin dashes hopes of further tariff cuts

Posted on January 15, 2020 at 9:10 am GMT

Risk appetite eases as details of ‘phase one’ trade deal expected to reveal few surprises US Treasury Secretary Steven Mnuchin suggests no additional tariff rollbacks before ‘phase two’ Stocks slip into the red, yen and franc edge up Market mood dampened ahead of trade deal signing The highly anticipated signing of the ‘phase one’ trade pact between the United States and China will take centre stage later today but with the deal already fully priced in by investors, the event [..]

Daily Market Comment – Dollar hits 110 yen after US removes China as currency manipulator

Posted on January 14, 2020 at 9:18 am GMT

US removes currency manipulator label from China ahead of signing of trade deal Yuan surges, yen slides as risk-on theme continues Wall Street hits another record as earnings season gets into full gear US-China tensions thaw further ahead of trade deal signing Relations between the United States and China got a boost on Monday after the US Treasury Department decided to no longer designate China as a currency manipulator. The announcement, which comes just two days before the two countries [..]

Technical Analysis – GBPUSD holds bearish bias but strong support awaits near 1.2900

Posted on January 14, 2020 at 7:33 am GMT

GBPUSD has been negative from the beginning of the new year as the 1.3285 resistance seems to be a real struggle for the bulls. Technically, the price dropped beneath the 20- and 40-period simple moving averages (SMAs), challenging the Ichimoku cloud in the daily timeframe. The RSI is standing below its 50 neutral mark but is flattening, while the MACD oscillator is remaining below its trigger line and near the zero level, confirming the recent bearish view. Further declines could meet a [..]

Daily Market Comment – Risk assets remain well bid ahead of signing of trade deal; pound slips on rate cut speculation

Posted on January 13, 2020 at 9:33 am GMT

Risk assets start week on positive note, driven by optimism of ‘phase one’ trade deal being signed on Wednesday Risk-on sentiment, along with easing Iranian tensions, weigh on safe havens; gold and yen slide Pound under pressure as more BoE policymakers join the rate cut bandwagon Trade deal optimism continues to set market tone The week got off to an upbeat start as investors set their sights on the imminent signing of the US-China trade pact on Wednesday, which is [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms