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  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
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  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
GBP Rallies on Brexit Headlines, AUD/USD Price May Look Past RBA

GBP Rallies on Brexit Headlines, AUD/USD Price May Look Past RBA

Daniel Dubrovsky, Strategist

Asia Pacific Market Open – British Pound, Brexit News, Canadian Dollar, Australian Dollar, RBA

Check out our 4Q forecasts for equities in the DailyFX Trading Guides page

The British Pound headed higher against its major counterparts Monday, adding to gains it enjoyed at this week’s market open which were driven by Brexit headlines. This was then compounded by a pullback in the US Dollar during Wall Street trading hours. Perhaps reflecting an unwinding of positioning ahead of local midterm elections.

The Canadian Dollar was unable to hold on to gains following commentary from BoC’s Governor Stephen Poloz. He mentioned that their policy rate ‘will need to rise to neutral to hit target’, but local government bond yields were little changed. This suggests that BoC hawkish bets were not fueled. His speech did coincide with weakness in the US Dollar, perhaps explaining CAD gains.

But those were pared after crude oil prices declined later in the day despite the US sanctioning about 700 entities in Iran. The commodity initially rallied on the news, reflecting supply disruption concerns. Scretary of State Mike Pompeo did say that temporary oil wavers were issued to countries such as South Korea and China.

As Tuesday’s session began, reports crossed the wires that the EU will offer a compromise on the Irish border for UK Prime Minister Theresa May. As a result, EUR/GBP prices continued resuming the dominant downtrend after a bullish breakout attempt failed. The pair is eyeing range of horizontal support between 0.87237 and 0.87182.

The Australian Dollar has been struggling to push above a descending resistance line from earlier this year, keeping the dominant downtrend intact. It is looking to today’s RBA rate decision next, but the event itself may pass without much fireworks given recent lackluster CPI data. In general, the Aussie has been primarily driven lately by risk trends and domestic political uncertainty.

I will be hosting live coverage of the RBA rate decision, covering Aussie crosses on Tuesday the 6th beginning at 3:15 GMT

With that in mind, given the close proximity of the 2018 US midterm elections, the Aussie Dollar may be more interested where market mood is going. We may see restrained volatility until the arguably more consequential event is behind us.

Fundamental Forecast:

New Zealand Dollar may sink as RBNZ leaves the door open to rate cuts

US Trading Session

GBP Rallies on Brexit Headlines, AUD/USD Price May Look Past RBA

Asia Pacific Trading Session

GBP Rallies on Brexit Headlines, AUD/USD Price May Look Past RBA

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

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--- 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.

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