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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • The Japanese Yen has found some support after weakening this month against the US Dollar and Euro. Have we seen the top in USD/JPY and EUR/JPY? Find out from @ddubrovskyFX here:https://t.co/TsLjTAsoCE https://t.co/41IIOiVqip
  • Hello traders! I will be starting the webinar shortly, resuming the discussion on how retail traders are back to tending to sell Wall Street Signup for the session below to find out what that means for markets going forward! https://t.co/Batq4jvLe6
  • Join @ddubrovskyFX at 19:00 EST/23:00 GMT for a webinar on what other traders' buy/sell bets say about price trends. Register here: https://t.co/AzOQip9B3r https://t.co/S5M8Q1hq4w
  • 🇳🇿 Balance of Trade (SEP) Actual: N$-2171M Previous: N$-2139M https://www.dailyfx.com/economic-calendar#2021-10-26
  • RT @BrendanFaganFx: Nasdaq 100 Edges Higher as Microsoft, Alphabet, Twitter Report Earnings $NDX $NQ_F $QQQ $MSFT $GOOGL $TWTR Link: http…
  • Heads Up:🇳🇿 Balance of Trade (SEP) due at 21:45 GMT (15min) Previous: N$-2144M https://www.dailyfx.com/economic-calendar#2021-10-26
  • NZD/USD struggles to retain the advance from the start of the week following an unexpected improvement in US household sentiment. Get your %NZDUSD market update from @DavidJSong here:https://t.co/QR98lVXppm https://t.co/fap0XpjcJD
  • Seriously Twitter, how do you beat on revenue and miss so significantly on EPS. The flexibility in GAAP is so wide, you could drive a truck down the middle path...
  • 🇰🇷 Consumer Confidence (OCT) Actual: 106.8 Previous: 103.8 https://www.dailyfx.com/economic-calendar#2021-10-26
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.13% 🇬🇧GBP: 0.01% 🇨🇭CHF: 0.01% 🇨🇦CAD: -0.05% 🇪🇺EUR: -0.11% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MJgqSk2P9o
GBP/USD No-Deal Brexit Rally Lacks Momentum, AUD Eyes China Data

GBP/USD No-Deal Brexit Rally Lacks Momentum, AUD Eyes China Data

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • UK Parliament rejected a ‘no-deal’ Brexit, boosting market sentiment
  • Remarkable GBP/USD rally lacked momentum, resistance range held
  • AUD/USD may be torn between soft China data and rising Asia stocks

Build confidence in your own British Pound strategy with the help of our free guide!

Key FX Developments Wednesday

British Poundvolatility continued to be elevated as a series of Brexit-related votes in UK’s Parliament crossed the wires. On Wednesday, and by a thin margin of 4 votes, MPs rejected a ‘no-deal’ Brexit by favoring the ‘Spelman Amendment’. A subsequent vote to block a ‘no-deal’ by trying to take it permanently off the table then passed 321 to 278.

After Theresa May’s revised Brexit deal was rejected yesterday, increasing the odds of a ‘no-deal’ divorce, today’s round of voting seemed to be interpreted by the markets as decreasing the chances of the UK crashing out of the EU without any deal. Not surprisingly, the British Pound was the best-performing major currency by an overwhelming majority.

GBP/USD Technical Analysis

The 1.81% advance in GBP/USD on Wednesday was its most aggressive since April 2017, almost two years ago. On the daily chart below, Sterling is struggling to clear a range of resistances composed of the July and September 2018 highs between 1.3301 and 1.3363. Negative RSI divergence shows that upside momentum is fading and it may precede a turn lower.

GBP/USD Daily Chart

GBP/USD No-Deal Brexit Rally Lacks Momentum, AUD Eyes China Data

Chart Created in TradingView

Pronounced British Pound gains throughout Wednesday robbed most other major currencies from gains. In particular, the pro-risk Australian and New Zealand Dollars failed to capitalize on an improvement in sentiment as the S&P 500 trimmed its losses from last week. This is despite losses in Asia stocks earlier in the day. The uptick in market mood seemed to be supported by US durable goods surprising to the upside.

Thursday’s Asia Pacific Trading Session

AUD/USD will be eyeing Chinese industrial production and retail sales data early into Thursday’s session. China is Australia’s largest trading partner and economic performance in the former can have knock-on effects for the latter. According to the Citi surprise index, data in the world’s second-largest economy has been tending to disappoint relative to economists’ expectations.

While a downside surprise may bode ill for the Australian Dollar, this may be somewhat countered by APAC equities following Wall Street higher. S&P 500 futures are pointing to the upside as regional bourses begin opening for trading. In the medium-term, there remain numerous uncertainties for Brexit. Until that becomes increasingly clear, gains in stock markets based on alleviating hard-Brexit concerns may only be a temporary sugar rush. Especially with fears about slowing global growth lingering.

US Trading Session Economic Events

GBP/USD No-Deal Brexit Rally Lacks Momentum, AUD Eyes China Data

Asia Pacific Trading Session Economic Events

GBP/USD No-Deal Brexit Rally Lacks Momentum, AUD Eyes China Data

** 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