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.

Free Trading Guides
EUR/USD
Bullish
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/q4RfSm5E8I
  • LIVE IN 30 MIN: Currency Strategist @PaulRobinsonFX discusses important technical developments relevant to short to intermediate-term commodity and equity index traders here - https://www.dailyfx.com/webinars/816147795?CHID=9&QPID=917720
  • ECB's De Guindos says monetary policy side effects are becoming more evident $EUR
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/10:30 AM GMT to gain insight on indices and commodities for the active trader. Register here: https://t.co/gghsFsZYlx https://t.co/ujAbNhzLpz
  • Why financial market traders must monitor both monetary and fiscal policy?Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/gbDTCgqHI5
  • Heads Up:🇬🇧 GBP Unit Labor Costs (YoY) (2Q) due at 09:30 GMT (15min), Actual: N/A Expected: N/A Previous: 2.1% https://www.dailyfx.com/economic-calendar#2019-11-20
  • RT @mynamejd: SP500 earnings revisions up & down per sector - Source Refinitiv https://t.co/bvmlQCltkN
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.87%, while traders in US 500 are at opposite extremes with 79.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/06877Dk0Iz
  • Heads Up:🇪🇺 EUR ECB Publishes Financial Stability Review due at 09:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2019-11-20
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 0.37% Silver: 0.22% Oil - US Crude: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Nl2cW4qqNE
Brexit, Italy Bets Sink GBP/USD, Reversal Due? Asia Stocks to Rise

Brexit, Italy Bets Sink GBP/USD, Reversal Due? Asia Stocks to Rise

2018-10-14 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – S&P 500, US Dollar, British Pound, Euro

  • European shares gapped higher, then traded lower as markets might have taken Brexit, Italy bets
  • The US Dollar capitalized on its reserve currency status, climbing higher against its major peers
  • GBP/USD once again step closer to downside reversal, Asia Pacific stocks may echo S&P gains

We just released our 4Q forecasts for the British Pound in the DailyFX Trading Guides page

After declining since October 4th, the US Dollar took a pause and gained ground against most of its major counterparts as the global stock selloff took a breather. Gains notably accelerated, particularly against the British Pound, as the markets transitioned to Friday’s European trading session. There, the DAX and Euro Stoxx 50 gapped higher, but almost immediately began declining.

The US Dollar’s appreciation then picked up pace as local government bond yields declined, signaling traders prioritizing safety. Last week we saw the greenback failing to capitalize on its status as the world’s reserve currency. This could have been amidst optimism on Brexit progress as the Euro and British Pound appreciated, but this time was different.

This week offers a couple of notable event risk for the Pound and Euro. For the former, Tuesday holds the possibility that EU ministers could sign off on the draft of Brexit summit conclusions. For the latter, Italy is scheduled to send final budget to the European Commission on Monday for their approval. Perhaps investors were taking bets in the event things go wrong.

During Wall Street trading, the S&P 500 gapped higher before immediately heading lower. However, the index managed a last minute push to the upside. For now, this could only mean little more than a correction. With that in mind, baring adverse event risk that crosses the wires during the weekend, we may see the somewhat improvement in market mood echo into Monday’s Asia Pacific trading session.

GBP/USD Technical Analysis

After Friday’s performance, the British Pound is yet again facing another bearish engulfing reversal candlestick pattern against the US Dollar. However, the near-term ascending support line from earlier this month still holds. With that in mind, a close under could be confirmation that the next leg will be lower for GBP/USD. Meanwhile immediate resistance is around 1.3241.

GBP/USD Daily Chart

GBP/USD Daily Chart

What Else to Expect Ahead?

New Zealand Dollar Fundamental Outlook

Australian Dollar Technical Outlook

Analyst Pick:

AUD/NZD Long at 1.09168

US Trading Session

US Trading Session

Asia Pacific Trading Session

Brexit, Italy Bets Sink GBP/USD, Reversal Due? Asia Stocks to Rise

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.