GBPUSD

Strategy update: The trade ‘truce’, the Fed’s possible pause and May’s Brexit woes

Posted on December 5, 2018 at 3:06 pm GMT

Markets unconvinced by Trump-Xi trade rapprochement The Fed could slow rate hikes Market braces for Brexit turbulence as May struggles to convince Parliament Markets unconvinced by Trump-Xi trade rapprochement A major theme for global markets and the global economy is the uncertainty caused by the frictions between the United States and China. It was therefore an initially positive piece of news that the two countries would restart a new round of negotiations that would last for 90 days, that China would pledge to import [..]

European Open Preview – Stocks sink amid trade woes; BoC decision eyed

Posted on December 5, 2018 at 8:57 am GMT

Trump’s trade posturing sinks stock markets Bank of Canada to stand pat (1500 GMT), but may appear a touch more cautious Dollar rebounds after Fed’s Williams reiterates “gradual hikes” Sterling remains turbulent as Parliamentary debate kicks off Equities sink on Trump’s trade posturing Wall Street plunged, with the S&P 500 falling by a whopping 3.24% and the tech-heavy Nasdaq Composite nosediving by 3.80%. Meanwhile, defensive assets like the Japanese yen outperformed. The mood was already sour before the US markets [..]

UK services PMI to get eclipsed by Brexit again as Parliament begins debate – Forex News Preview

Posted on December 4, 2018 at 4:27 pm GMT

After both the manufacturing and construction PMIs beat expectations in November, the services PMI, due out of the UK on Wednesday at 09:30 GMT, will be eyed to complete the hat-trick. However, even if the more dominant services PMI does not disappoint and points to stronger economic activity in November, traders are unlikely to cut their bearish bets on sterling as the Brexit drama shows no sign of ending anytime soon. Brexit uncertainty and political turmoil in the UK dragged [..]

European Open Preview – Markets retrace as trade optimism wanes

Posted on December 4, 2018 at 8:58 am GMT

Trade optimism fades as markets digest the agreement Dollar extends recent pullback Oil continues to recover amid speculation for an OPEC cut RBA slightly more upbeat, but no policy change in sight Stocks edge higher on trade relief, but optimism wanes The boost to global risk appetite following the US-China trade “ceasefire” seems to have been short-lived. Even though US stock markets closed higher, they did surrender a decent part of their gains late in the session, and futures tracking [..]

Technical Analysis – GBPUSD faces strong challenge at 1.2693

Posted on December 4, 2018 at 8:18 am GMT

GBPUSD has been under pressure since early November, with bears pushing hard to breach the strong support around 1.2693. In the short term, the bias remains negative as the RSI hovers below its neutral threshold of 50 and the MACD continues to move beneath its red signal line. Should the price break the floor around 1.2693, and more importantly close under the 1.2660 bottom, the lowest mark registered since June 18, bearish market action may pick up speed towards the [..]

European Open Preview – Risk-on sentiment resumes as trade storm eases

Posted on December 3, 2018 at 9:37 am GMT

Stocks up, dollar down as trade fears ease French President Macron under political pressure but euro heads up Brexit risks loom in the background Oil surges as Russian President backs production cuts; Qatar to withdraw OPEC membership Stocks head higher on trade relief The US President, Donald Trump, and the Chinese leader, Xi Jinping had progressive trade talks during their dinner on the sidelines of the G20 summit on Saturday, with the world’s largest economies deciding to ceasefire the [..]

Week Ahead – Spotlight on US jobs report after ‘Powell Put’; RBA and BoC meet

Posted on November 30, 2018 at 1:56 pm GMT

The coming week will be significant both in terms of data releases as well as for central bank meetings. November nonfarm payrolls out of the US will likely be the most anticipated report but it’s going to be a big week for the Australian dollar too as Q3 GDP numbers are due along with an RBA meeting. The Bank of Canada will be the other central bank holding a scheduled meeting, though the Canadian dollar will probably be paying more [..]

European Open Preview – All eyes on the Trump-Xi meeting

Posted on November 30, 2018 at 8:41 am GMT

The Trump-Xi meeting is due tomorrow; whether a “ceasefire” is agreed may determine the near-term direction of the dollar and equities Market reaction to FOMC minutes was muted. Attention turns to a speech by NY Fed President Williams today at 1400 GMT Oil rebounds after posting fresh one-year lows, eyes next week’s OPEC meeting Trump and Xi to meet, outcome may shape risk appetite Movements in the FX market were largely subdued, with investors increasingly turning their attention to the [..]

European Open Preview – Powell sinks dollar, but mind the Fed minutes

Posted on November 29, 2018 at 8:38 am GMT

Dollar drops as Powell appears “dovish”. However, markets may have overreacted, hence today’s Fed minutes (1900 GMT) could be crucial Equities and commodity-linked currencies lifted by Powell’s remarks Pound capitalizes on dollar’s pullback and signs voters may support May’s deal Dollar drops as Powell appears “cautious”, but Fed minutes crucial Fed Chair Powell’s speech yesterday was widely perceived as dovish. The comment that grabbed most attention was that rates “remain just below the broad range of estimates that would be [..]

European Open Preview – Greenback eyes Fed Chair Powell’s speech

Posted on November 28, 2018 at 9:06 am GMT

Dollar flirts with 1½-year highs as Fed’s Clarida “sticks to script” on hikes; remarks by Fed Chair Powell today at 1700 GMT will be key Stocks briefly slip on rumors of car tariffs but recover on Kudlow’s optimism Pound remains under pressure as political uncertainty reigns Dollar firms after Clarida’s remarks, and amid whispers of car tariffs The greenback shined bright once again on Tuesday, with the dollar index soaring to come within breathing distance of its recent 1½-year highs. [..]

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