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
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
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
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
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCrRwD https://t.co/7w5jodyzj0
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/L3LPCph2ST
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/ysxKO30ZWw
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/5nHxtlZ7nn
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lqpXwWjVFt
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/CrpXuYgfRO
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/VzEbQn8blk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/ETF52Q2sLz
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/AXZxK8Abrh
  • Global stock markets may see turbulent volatility if darkening clouds over Washington’s relations with Beijing turn into a geopolitical storm. Which assets will be the lifeboat? Find out here:https://t.co/RkFI6qAyik https://t.co/9Ppa4d48Ql
GBP/USD, FTSE 100 Stock Index Outlook Mired By 'No Deal' Brexit Fears

GBP/USD, FTSE 100 Stock Index Outlook Mired By 'No Deal' Brexit Fears

Daniel Moss, Analyst

GBP/USD, FTSE 100, Brexit, UK-EU Trade Negotiations – Talking Points:

  • Risk appetite notably soured during APAC trade as coronavirus concerns continue to drag on investor sentiment
  • Renewed ‘no deal’ Brexit fears may prevent further upside for GBP/USD as it approaches a key inflection point
  • FTSE 100 index seems poised for further declines with price perched precariously above pivotal support. Could a sustained sell-off be on the cards?

Asia-Pacific Recap

Coronavirus concerns continued to dictate market sentiment throughout the Asia-Pacific trading session as the re-imposition of lockdown measures in Melbourne, Australia’s second largest city, hampered regional risk-sensitive assets.

The Australian Dollar retreated alongside the ASX 200 as Chinese equities paused for breath after a historic surge above the 16,000 handle. S&P 500 futures notably declined after daily new cases of Covid-19 in Texas jumped above 10,000 for the first time.

News that the Trump administration may look to undermine the Hong Kong Dollar’s peg to the US Dollar could fuel further risk aversion in the upcoming session as the world’s two biggest economies continue to go toe-to-toe.

Looking ahead, comments from European Central Bank Vice President Luis de Guindos may prove market moving whilst EIA crude oil inventories could help to support WTI prices should stockpiles decline more than expected.

GBP/USD, FTSE 100 Stock Index Outlook Mired By 'No Deal' Brexit Fears

Market reaction chart created using TradingView

UK Ready to Leave EU on ‘Australia’ terms

Although the United Kingdom’s recovery “has come sooner and has been faster” than originally anticipated, Bank of England Chief Economist Andy Haldane stressed there remains “a huge amount of uncertainty about what paths the economy might take from here”.

This uncertainty may be compounded by reports claiming that Prime Minister Boris Johnson informed German Chancellor Angela Merkel that Britain would be ready to leave the European Union on “Australia” terms at the end of the transition period, if a ratified deal fails to get across the finish line.

GBP/USD, FTSE 100 Stock Index Outlook Mired By 'No Deal' Brexit Fears

Source – Office for National Statistics (ONS)

The introduction of an agreement mirroring the EU’s current trade terms with Australia – based primarily on World Trade Organization rules - would be economically crippling for both parties, resulting in the imposition of restrictive quotes and tariffs.

That being said, the Prime Minister may be attempting to soften the bloc’s position on several contentious issues holding back the negotiations as the EU remains firm in its attempts to garner a ‘level playing field’.

Nevertheless, the ongoing talks may continue to act as an anchor on the British Pound and regional risk assets as investors adapt to the distinct possibility of a ‘no deal’ Brexit.

FTSE 100 Daily Chart – Yearly Downtrend Capping Upside Potential

Image of FTSE 100 Index Price Daily Chart

FTSE 100 index daily chart created using TradingView

When accounting for the UK’s fundamental backdrop, it comes as no surprise that the FTSE 100 index has grossly underperformed its major counterparts.

From a technical perspective, the outlook remains tilted to the downside despite price remaining temporarily underpinned by Ascending Channel support and the 50-day moving average (6,105).

The development of the Momentum indicator reinforces the bearish tilt seen in recent price action and could potentially encourage sellers, should it break through support extending from early-April.

A close below the July low (6,084) is needed to validate bearish potential, with a break below the psychologically pivotal 5,800 level possibly leading to a resumption of the primary downtrend.

GBP/USD Daily Chart – 200-DMA Stifling Buyers

Image of GBP/USD Price Daily Chart

GBP/USD daily chart created using TradingView

The British Pound continues to benefit from US Dollar weakness as it surged back above the 50-DMA (1.2460) after finding support at the psychological 1.2250 level.

With the RSI strengthening above its mid-point, a push above the 200-DMA (1.2590) to test the April high (1.2648) may be on the cards.

However, a break of the June high (1.2813) remains relatively unlikely should the RSI fail to break above its key inflection zone into bullish territory above 60.

A swift reversal of the oscillator may ignite selling pressure, with a close below the 50-DMA (1.2460) potentially carving a path back to the June low (1.2252).

-- Written by Daniel Moss, Analyst for DailyFX

Follow me on Twitter @DanielGMoss

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

DISCLOSURES