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
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
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
More View more
Real Time News
  • What are some market highlights post the US Presidential Election debate 🇺🇸? Find out from @ZabelinDimitri 👇 https://t.co/28G8N0ewZF
  • What are some market highlights post the US Presidential Election 🇺🇸? Find out from @ZabelinDimitri 👇 https://t.co/JCHkGmB1vt
  • China's SAFE: To continue pushing opening up of bond market, Yuan FX rate is driven by actual demand, hedging needs -BBG
  • The Dow Jones index entered a consolidative period since mid-October and its near-term trend appears to be bearish-biased (chart below). It has tested an immediate support level at 28,040 and has since rebounded. An immediate resistance level can be found at 28,390. https://t.co/k73TRONC4a
  • Gold prices may rise if the final presidential debates reinforces Mr. Biden’s lead in the polls and softens demand for the haven-linked US Dollar. Get your $XAUUSD market update from @ZabelinDimitri here:https://t.co/pqptZJIu1c https://t.co/N1YWvclmeF
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.09% Oil - US Crude: -0.04% Silver: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/AiUlPq7rAZ
  • Wall Street Futures Update: Dow Jones (-0.131%) S&P 500 (-0.152%) Nasdaq 100 (-0.144%) [delayed] -BBG
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.15% 🇦🇺AUD: 0.03% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.11% 🇨🇦CAD: -0.11% 🇪🇺EUR: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jM5XCsmq87
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.72%, while traders in EUR/USD are at opposite extremes with 72.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/C9mpbatCwo
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/tAokLiuesJ
GBP/USD Rate Reversal May Accelerate as NZD/USD Price Rises

GBP/USD Rate Reversal May Accelerate as NZD/USD Price Rises

2019-12-20 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

British Pound Slides as New Zealand Dollar Gains

The British Pound was the worst-performing major currency on Thursday, extending declines in the aftermath of last week’s UK general election. Losses accelerated once yesterday’s Bank of England rate decision crossed the wires, allowing the fundamental risk of no-deal Brexit to reinstate itself for GBP. The central bank left rates unchanged, though downgrading 4Q GDP estimates as CPI is expected to slow ahead.

On the flip side of the table, the sentiment-linked Australian Dollar and New Zealand Dollar had a fairly rosy session. The former was propped up by better-than-expected local employment data in addition to the “risk-on” tone from US stock exchanges. The S&P 500 and Dow Jones ended the day 0.45 percent and 0.49% to the upside respectively.

Investors have had near-term reason to chase returns in equities following the “phase one” US-China trade agreement. This has also fueled gains in sentiment-linked crude oil prices on what could be an improving outlook for global growth. The haven-linked US Dollar aimed cautiously lower as traders’ need for preserving capital and prioritizing liquidity was diminished.

Friday’s Asia Pacific Trading Session

Asia Pacific benchmark stock indexes may follow Wall Street higher as the week wraps up, pressuring the anti-risk Japanese Yen. This may bode well for the sentiment-linked AUD and NZD. The New Zealand Dollar may rise on local credit card spending for November. Data out of the country has been tending to increasingly outperform relative to expectations as of late, opening the door to continuation ahead.

British Pound Technical Analysis

The British Pound may be reversing its dominant uptrend from September after GBP/USD confirmed an Evening Star. This is a bearish candlestick pattern. Prices have also taken out near-term rising support from October. That may push the currency pair towards November lows with 1.2950 standing in the way as immediate support. Simultaneously, an uptick in net long positioning may add fuel to GBP’s descent.

GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 19% -16% -6%
Weekly -26% 52% 10%
Learn how to use sentiment in your trading strategy
Get My Guide

Chart of the Day – GBP/USD

GBP/USD Rate Reversal May Accelerate as NZD/USD Price Rises

Chart Created Using TradingView

--- Written by Daniel Dubrovsky, 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