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
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/kERhNpX24T
  • 🇫🇷 Unemployment Benefit Claims (SEP) Actual: -15.2K Previous: -171K https://www.dailyfx.com/economic-calendar#2020-10-27
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.88%, while traders in NZD/USD are at opposite extremes with 72.94%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vSpkpJR5DJ
  • Heads Up:🇫🇷 Unemployment Benefit Claims (SEP) due at 11:00 GMT (15min) Previous: -171K https://www.dailyfx.com/economic-calendar#2020-10-27
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.36% Silver: 0.20% Gold: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/R4iP2hBi7y
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/opRjJQoGPZ
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.21% 🇯🇵JPY: 0.17% 🇳🇿NZD: 0.14% 🇬🇧GBP: -0.00% 🇪🇺EUR: -0.01% 🇨🇭CHF: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/sbn9fdKRMA
  • If you're in the UK or Western Europe this will be an hour earlier than previously because of the clocks going back... https://t.co/mhvbYLCAkA
  • PBoC to remove counter-cyclical factor in Yuan fixing
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: 0.14% Wall Street: 0.01% FTSE 100: -0.20% Germany 30: -0.78% France 40: -1.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Q6UKBovHvF
GBP/USD, EUR/USD Remain Technically Weak as 'Hard Brexit' Fears Persist

GBP/USD, EUR/USD Remain Technically Weak as 'Hard Brexit' Fears Persist

2016-10-14 12:12:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- European Council President Tusk says 'Hard Brexit' is the only option.

- EUR/USD, GBP/USD both to suffer under 'Hard Brexit' scenario.

- See the DailyFX economic calendar for Friday, October 14.

The US Dollar (via DXY) is churning ever-so-slightly higher thanks to more weakness in EUR/USD this morning, but it's evident this strength isn't consistent. A look at the equal-weighted USDOLLAR Index shows only a small gain, due in large part to AUD/USD offsetting US Dollar strength elsewhere.

In a sense, today's price action reveals the US Dollar's dilemma: without Fed rate expectations pushing higher, there is little fuel to keep bullish optimism intact. After all, the Atlanta Fed's GDPNow Q3'16 growth tracker has fallen from +3.8% to +2.2% since early-August.

As such, with Fed rate expectations for December abating slightly to 66%, the only place the US Dollar is finding appeal is versus currencies embattled by policy challenges: the Japanese Yen and the BOJ; and the Euro and the British Pound for Brexit. Otherwise, with commodities' prices firming, currencies like the Australian Dollar and the Canadian Dollar have found renewed demand versus the greenback; both AUD/USD and USD/CAD remain in their multi-week consolidations.

With respect to the Euro, it seems a period of 'catch up' is underway after seemingly being immune to Brexit-related concerns. The Euro still isn't in its own driver's seat, and it looks more and more like the Euro is being overwhelmed by a myriad of small concerns piling up in the short-term.

See the video (above) for technical considerations in EUR/USD, GBP/USD, USD/JPY, EUR/JPY, GBP/JPY, AUD/USD, and the USDOLLAR Index.

Read more: Fed Rate Hike Odds Steady but LT Challenges Remain for USD

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES