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
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
Oil - US Crude
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
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The Japanese Yen responded to a key technical barrier last week with and leaves the bears vulnerable early in the month. Get your $USDJPY technical analysis from @MBForex here: https://t.co/ijElJvmHyn https://t.co/Xv7pVMQ6h4
  • Trump to announce 10% tariff on Canadian Aluminum - BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Silver: 5.25% Gold: 0.99% Oil - US Crude: 0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gpka4HBCay
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.03%, while traders in US 500 are at opposite extremes with 76.79%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FfFR6kxBCO
  • Ahead of the RBNZ rate decision next week, the New Zealand Dollar has struggled to climb higher against its major counterparts, with the exception of the US Dollar. Get your market update from @JMcQueenFX here:https://t.co/iZxV2qSVrw https://t.co/CGE3WeJ3Yl
  • U.S. State Department lifts travel advisory for all international travel - BBG
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 0.21% Wall Street: 0.20% France 40: 0.10% Germany 30: 0.06% FTSE 100: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/uCGMUoQfxx
  • Senator Collins 'still optimistic' on stimulus deal - BBG
  • Update on #Cryptocurrencies #BITCOIN +1.33% #BITCOINCASH +5.60% #ETHEREUM -0.07% #RIPPLE +1.08% #LITECOIN +1.63%
  • https://t.co/A8Ywz4dGqr
GBP, CHF Eyeing Brexit Vote - USD Waiting for New Home Sales

GBP, CHF Eyeing Brexit Vote - USD Waiting for New Home Sales

2019-03-14 06:30:00
Dimitri Zabelin, Analyst
Share:

TALKING POINTS – BREXIT VOTE, US NEW HOME SALES

  • CHF, GBP traders anxiously waiting for Brexit vote
  • USD eyeing UK event risk and local new home sales
  • If an extension is granted, how much will it cost?

See our free guide to learn how to use economic news in your trading strategy!

Sterling will be biting its proverbial nails today as the House of Commons gears up for a third major Brexit-related vote. After May’s plan was defeated on Tuesday, another vote was held on whether the UK would leave the EU without a deal. It was subsequently voted down. Now, UK lawmakers are gathering for a vote on extending the March 29 deadline. If it passes, will the EU agree, and much will it cost…for both sides?

EU officials stated that if an extension was granted, it could come with a 39 billion GBP price tag. Now, the cost for the EU is less pecuniary than it is political. If European officials are too lenient, it could incentivize Eurosceptic parties around Europe to follow the UK and vote to leave. Conversely, if they are too harsh and rigid, it could embolden parties around Europe that accuse Brussels of being a technocratic leviathan.

With the upcoming European Parliamentary elections in May, the EU has to do what it can to preserve what positive views there are of Brussels in order to ensure pro-European lawmakers are voted in and crowd out their Eurosceptic counterparts. The fear of geopolitically-based market disturbance in Europe has swelled with ECB President Mario Draghi citing it as a growing concern in the last policy meeting.

If the outcome of the Brexit vote results in a demand for haven assets, the US Dollar, Japanese Yen and Swiss Franc (CHF) may gain. The latter may outperform its other anti-risk colleagues due to its geographical proximity to the European-based event risk. This might explain why CHF was strengthening almost throughout the entire APAC trading hours.

The US Dollar will be focusing on local economic data. Month-on-month new home sales are expected to rise 0.30 percent after a previous rise of 3.70. If more people purchase homes, the subsequent spending in furniture and various other house-related expenditures multiplied across the population creates an aggregate spending effect that pushes up inflation. This in turn could influence Fed monetary policy and send the US Dollar higher.

CHART OF THE DAY: GBP/CHF, GBP/USD, GBP/JPY, GBP/EUR SINCE MARCH 11

Chart Showing GBP/CHF, GBP/JPY, GBP/USD, GBP/ EUR

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

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.