AUD Breaches Bearish Channel, GBP Choppy on Brexit Newsflow - US Market Open
MARKET DEVELOPMENT – BOE PROVIDE NO FIREWORKS FOR GBP
USD: The US Dollar is on the backfoot to begin the month with the index losing 0.6% having failed to consolidate above the 97.00 handle. Much of the short-term drivers that had supported the US Dollar (Fed QT, Month-End) have now passed, and thus the US Dollar is experiencing a slight unwind of its recent bid. On the macro front, eyes will be on the latest US Jobs reports with the focus on wages.
AUD / NZD: Antipodeans are surging this morning, in part due to the drop in the US Dollar, while the Australian Dollar has also been further supported by the wider than expected trade surplus. AUDUSD has made a breach of the topside of the descending channel that has been place for the majority of the year. A close would be to flag a potential bullish breakout.
GBP: The Pound had been initially supported from reports that the UK and EU had tentatively agreed a Brexit deal on financial services, which in turn took GBPUSD above 1.29. However, this had later been refuted by both EU and UK officials. Nonetheless, the Pound continues to trade at elevated levels. The BoE quarterly inflation report failed to provide any fireworks for GBP with the BoE keeping rates unchanged, the commentary in the minutes had been slightly positive with the BoE forecasting a steeper rate path in the longer term. Resistance at 1.2920 has curbed further upside for now.
DailyFX Economic Calendar: Wednesday, November 1, 2018 – North American Releases
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Five Things Traders are Reading
- “Bank of England Leaves Rates Unchanged, Sterling (GBP) Remains Supported” by Nick Cawley, Market Analyst
- “Dismal ISM Manufacturing Survey to Fuel EUR/USD Rebound”by David Song , Currency Analyst
- “FTSE 250 Outperforms FTSE 100 on Brexit Developments”by Justin McQueen, Market Analyst
- “GBP Price: Positive Brexit News Boosts Sterling, BOE Ahead” by Nick Cawley, Market Analyst
- “S&P 500, Dow Jones, and Nasdaq 100 Prices Retest Broken Trend Support” by Paul Robinson, Market Analyst
--- Written by Justin McQueen, Market Analyst
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