|Day's range||1.314 - 1.318|
|52-week range||1.2663 - 1.4377|
The British pound continues the chop around as we are starting to see a bit of resiliency on the part of Sterling. For me, this is a market that continues to be driven by headlines, so it is difficult to deal with. However, fears of a new election in the United Kingdom have subsided, and perhaps that might give us reason to rally.
Kiwi Dollar spikes on less pessimistic business sentiment, with Trump and Powell in the spotlight later today to hit the Dollar and the majors.
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’.
With headlines linked to Brexit and trade wars cross the wires, the market is likely to stay volatile. The pair started off with a bullish start during the yesterday’s session as it broke above the minor resistance level.
With stats on the lighter side and trade war chatter hitting the markets, Trump’s speech to the General Assembly at the UN could ruffle a few feathers.
After the ridiculous move last week, it is a bit surprising to see that there is some continuation in the rally from the British pound and early hours, but at this point it certainly looks as if that’s going to be the case.
Trade war jitters return, weighing on the equity markets and commodity currencies, Trump’s 2nd general assembly speech tomorrow of little comfort.
The Euro breaks lower after testing the massively resistive 1.18 level in the Friday’s session, which was the top of the larger consolidation area. It is expected that the 1.17 level underneath is going to offer strong support to the pair and is likely to trade above this range for next couple of session to gain momentum to break higher. After rallying significantly in the last few session, the pair experienced some cooling down effect and tested the 0.7250 level underneath for support.
GBP took a beating on Friday after PM May’s speech and talks of snap election further added bearish influence to British Pound.
The British pound initially tried to rally during the week, reaching towards the 1.33 level before pulling back to form a massive shooting star. This was in a negative sign, and I think it shows that we continue to follow the occasional headline as to where to go next. It looks as if the British pound is ready to roll over for a while, as Teresa May has suggested that the Brexit may be without a deal.
The British pound fell apart during the trading session on Friday, as Teresa May stated that she was sticking with her plan and wasn’t willing to bend watch when it comes to dealing with the European Union. With that being the case, the market looks very likely to continue to be very volatile.
Limited data for Friday will see continued focus given to Brexit talks, which see cold water beginning to splash on hopes for a peaceable workaround.
The British pound continues to go much higher, as Thursday was more of the same. Now that we are above the 1.3125 level, I am essentially a “buy only” trader when it comes to this pair.
Inflation numbers out of Japan this morning were a reminder of how far off the BoJ is from making a move, focus shifting to the EU and the Oval Office.
The Euro initially rallied during the day on Wednesday but is facing stiff resistance at the neckline of an inverse head and shoulders pattern that is formed on the daily chart. The market is expected to continue noisy and given the trade wars, USD will experience pressure and “buy on dips” will be the right strategy to continue in this market.
In the Asian markets, it seems that the recovery rally has exhausted. After two days of growth, Asian markets mixed, returning to the levels of the end of last week. Global stocks mostly higher.
The 100-day MA proved a tough nut to crack on the negative Brexit news and investors now await UK retail sales update for fresh impetus to move forward.
The British pound continues to be very noisy as a rumor was released the Teresa May was not happy with the latest compromise involving the Irish border with the EU ministers. Of course, this was released on Twitter, so it could be simple currency manipulation for all we know.
Impressive 2nd GDP numbers drive the Kiwi, with Brexit and retail sales numbers putting the Pound in the spotlight.
The Euro rallied initially during the Tuesday’s session but as soon as China announced retaliatory tariffs, the market turned extremely volatile. In order to continue with the bullish sentiment, it needs to break above the 1.1725 level, which will send this pair to the 1.1750 level and then to the 1.18 level. The pair is successfully holding above the 1.3125 level and given enough time, it likely that buyers send this market much higher.
Pound buyers are enjoying some Brexit relief as PM May and the EU’s Michel Barnier appear set to begin working together towards a solution.
The British pound went back and forth during the day on Tuesday but has done something rather important in the sense that the 1.3125 level looks to show signs of support after being broken to the upside. Currently, consolidation seems to be the way forward.