|Day's range||0.881 - 0.883|
|52-week range||0.8636 - 0.9086|
The British pound, as expected, experienced a high volatility day on Tuesday. As the result, however, the currency avoided serious pressure, ending Tuesday’s near levels at the opening. During the day on Tuesday, the pressure on the pound increased, sending GBPUSD from 1.2850 to 1.2700.
Yesterday we had a real roller-coaster on the GBP. Well, no surprise here as we had a Brexit vote and everybody expected the increase in volatility.
Today, the British Parliament is set to vote on Theresa May’s Brexit deal. Most economists are forecasting that the majority of MPs will vote against it, which will certainly have a negative impact on the pound. On the other hand, approval for the deal would certainly come as a surprise and most likely support the sterling.
With more than a quarter old support-line pulling the GBPUSD up, 50-day SMA level of 1.2775 is likely to play its role of resistance soon, if not then 1.2900 mark, comprising 100-day SMA, followed by 1.3000 round-figure, may gain buyers’ attention. Should prices rise beyond 1.3000 on a daily closing basis, eight-month long downward slanting TL, at 1.3055, and the 200-day SMA level of 1.3165 seem crucial to watch. Alternatively, the 1.2600, the 1.2570 and the 1.2500 could try limiting the pair’s declines before highlighting the 1.2425 TL support for one more time. ...
2018 is coming to an end and the year has brought about major changes in the foreign exchange market. Great events shaped the market and influenced the major currencies.
Today, in the EU markets’ focus is the ECB meeting, which often causes strong volatility. Mario Draghi is expected to confirm that the Central Bank will finally stop buying assets by the end of this year.
Asian markets closed mixed on Tuesday following Monday’s wild ride in US equities. Indices in the EU were up an average 1.75% in early Tuesday. The trade news from China helped lift US indices in early Tuesday trading.
The pair is range bound ahead of tomorrow’s brexit vote as tension remains high amid broad based USD weakness.
The US equity market was indicated to open with a small loss in early Monday. EU indices were flat to up at midday as Brexit hopes to provide support. Asian market was mostly higher despite a bombshell allegation against Nissan Chairperson Carlos Ghosn.
The Brexit news had a negative impact on the pound, the US futures market was indicating a positive open for equity indices in the early hours of the morning.
Five months to the deadline, Britain is yet to reach a deal with the European Union on how to go about Brexit. Steve Eisman believes that now is the right time to short two U.K banks as expectations of the U.K leaving Europe without a deal soars.
European markets were up on stronger than expected earnings. The US equities market was indicated to open higher on Thursday morning.
In order to understand the risks presented by the Italian economy, it is important to recognize why the situation in 2018 is so familiar to what we witnessed in 2011. Can Italy be the next Greece?
Traders are waiting for the Super Thursday. The Bank of England will release the interest rate. Of course, the market doesn’t anticipate any changes to the rate, however, it will try to catch the mood of the central bank. If the BOE is optimistic, the GBP will be supported.
First one is the USDJPY, where the price created a head and shoulders pattern but failed to break the neckline. OK, we cannot resist not to mention the EURGBP, especially with the setup like this one. EURGBP bounced from a horizontal resistance and the mid-term down trendline.
Analysts looking for key drivers over the near-term that will ultimately decide the fate of a number of currencies, economies and ultimately whether a new crisis dawns.
EURGBP is presently struggling with 50-day SMA level of 0.8940 in order to aim for the 0.8980 trend-line resistance, breaking which 0.9000 and the 0.9030 may regain market attention. With the immediate descending trend-line presently questioning the GBPAUD’s rise around 1.8185, the pair can drop back to 1.8055 and the 1.8000 round-figure but the 1.7930-15 and the 1.7815 TL might confine its further declines. Meanwhile, break of the 1.8185 trend-line can propel the pair to 1.8290 & 1.8350 resistances but the 1.8400 could limit the pair’s advances afterwards.
In this introduction, we will define the types of currency pairs and cover some of the basics you’ll need to know before you begin trading the ‘exotics’.
One wonders how the Eurozone will achieve higher core inflation if monetary policy slowly tightens and the economic activity slows. Should the Euro appreciate and get back above, say, the 1.20 mark against the greenback, it will be even harder for inflation to accelerate.
Today is one of the busiest days on the market in terms of the macro events in the past few months. Rates from the BoE, ECB, CPI data from US and job data from Australia. Nice, huh? In our trading, we try to reduce the risk as much as possible. We do that by, for example, not trading during those macro events. That is why, today, we will focus on DAX and WTI but if you like the thrill, here You are, the small part about the EURGBP:
One of the best setups at the beginning of the week can be found on the GBPUSD. The pair is on the back foot and the main reasons for that, from the fundamental point of view, are the weaker PMI number and the new comments from Mr. Barnier regarding Brexit. This comes in line with the technical analysis, which was giving us a sell signal as early as on Friday.
EUR/GBP has formed an ascending trend line confluence that is suggesting a further uptrend continuation. The POC zone 0.8900-10 is a possible bouncing spot where fresh buyers could turn the price up. Deeper retracement might target 0.8885-95 and that is also the zone where buyers might be waiting. The first target is 0.8930 followed by 0.8962 on a successful break of 0.8935.
The UK’s retail sales figures dropped unexpectedly in June. Sales declined by 0.5% in June compared to a growth of 1.4% in May. YoY Retail sales grew by 2.9, below analysts expectation of 3.7%. Pound hits a 10-month low near 1.30 versus the US dollar.