News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • US Dollar Price Action Setups: EUR/USD, GBP/USD https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/04/19/US-Dollar-USD-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD.html $USD $EURUSD $GBPUSD https://t.co/Jyr7pfHhdH
  • RT @CGasparino: BREAKING -- @JoeBiden Admin is in the early stages of developing a regulatory approach to the booming crypto biz, sources t…
  • The US Dollar is in correction within the yearly uptrend with the decline now eyeing initial support objectives just lower. Get your $USD technical analysis from @MBForex here:https://t.co/QLdiJa8z7v https://t.co/95rBic2Ke8
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.03% Gold: -0.29% Silver: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nj9OGkvt7a
  • The Dollar ($DXY) has cleared both its 50-day SMA and the midpoint of the 2021 range. What has greater pull: its roll as wayward safe haven (vs inverted $SPX) or the recent fade in returns (US 10yr). The 20-day correlation to both approximately ~0.8, strong https://t.co/1dteHRggua
  • US Dollar Index (DXY) trend from last March picking up steam again. February and January lows up next on radar, could take a few weeks. Get your market update from @PaulRobinsonFX here:https://t.co/KCsZINK3KI https://t.co/3EN4Xrxnjn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9j9ojxURdw
  • RT @ChadPergram: Biden now mtg w/bipartisan/bicameral mbrs about infrastructure. Says they're discussing "how to pay for it." Adds they "ho…
  • $WTI #Crude #Oil Price Outlook: Breakout Eyes Resistance- Bulls at Risk - https://t.co/RuNq3bxxaW https://t.co/784dxJq0m7
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.17% France 40: -0.21% FTSE 100: -0.21% Wall Street: -0.43% US 500: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TOxQi0CN8k
GBPAUD Long: Re-priced No-Deal Brexit Risk, US-China Trade War Continues

GBPAUD Long: Re-priced No-Deal Brexit Risk, US-China Trade War Continues

Justin McQueen, Analyst

GBPAUD Trading Strategy: Long at 1.7980, target 1.82, stop 1.7740

  • Trade Risk: Pullback in the recent rally, signs that a US-Chinese trade agreement is reached

See our Q3 FX forecast to learn what will drive major currencies throughout the quarter.

GBPAUD Fundamental Overview

GBP

Much of the negative newsflow regarding Brexit has been priced in and given the recent price action the Pound is seemingly more sensitive to positive headlines. This has been evidence by comments made by EU Chief Negotiator Barnier, who hinted that the EU would be prepared to offer a partnership with the UK after Brexit. In light of these comments, which had caught the markets off guard, risk premium related to no-deal Brexit has been slightly re-priced. As such, this sign that the EU is willing to budge from its negotiating position alongside the large speculative short positioning has reduced the attractiveness of chasing GBP lower on no-deal Brexit risks. If an agreement is reached between the UK and EU between October and November, expect a large corrective move higher.

AUD

Short term fundamentals have deteriorated over the past couple of weeks, namely from the turbelenece in Australian Politics with Malcom Turnbull replaced by Scott Morrison as PM. Since 2010, there has been a strong track record of selling the Aussie in the short term after a new PM has been found in an internal battle. Elsewhere, actions taken by Austrlia’s second largest lender, Westpac, in which the bank raised home loan rates in response to increased wholesale funding costs has increased the likelihood that the rest of the “big 4” banks will follow. This in turn, increases tightening in financial conditions and therefore reduces the pressure for the RBA raise interest rates.

Trade wars continues to dampen risk sentiment with the Trump administration looking to press ahead in imposing $200bln worth of tariffs on Chinese goods by next week. The Australian Dollar which is seen as a proxy for Chinese economic performance is thus likely to remain pressured in the near term.

GBPAUD Technical Overview

Resistance 1: 1.80 (Psychological)

Resistance 2: 1.8035 (Fib level)

Resistance 3: 1.8110 (May 16th High)

Support 1: 1.7820 (200DMA)

Support 2: 1.7780 (August 2nd High)

Support 3: 1.7745 (Fib level)

GBPAUD PRICE CHART: Daily Time Frame (February-August 2018)

GBPAUD Long: Re-priced No-Deal Brexit Risk, US-China Trade War Continues

Chart by IG

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES