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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
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
Bitcoin
Bullish
More View more
Real Time News
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
  • The $USD faces selling pressure against the Malaysian Ringgit and Philippine Peso. More losses may be in store in $USDMYR as $USDPHP descends through rising support from 2013. Get your market update from @ddubrovskyFX here: https://t.co/t3kmFpmg1w https://t.co/miBrgxmtkA
Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

2018-09-05 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – Brexit, S&P 500, Information Technology, BoC, EUR/USD

  • Brexit news lifted GBP/USD prices, but S&P 500 declined as it was weighed by tech sector
  • US Senators raised prospects of regulating social media. BoC disappointed hawks, CAD fell
  • EUR/USD downtrend may resume on US China trade war fears, eyes 1.1568 if resistance holds

Just getting started trading FX? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

The US Dollar was on pace to deliver another solid day of gains as market mood deteriorated during APAC trade, fueling haven demand for the world’s reserve currency. This then turned around later in the day amidst reports that Germany and the UK dropped a key Brexit demand, potentially paving a smoother path for Britain to strike with the European Union on an exit deal.

As a result, GBP/USD soared as much as 1.2% as the British Pound appreciated against its major counterparts. UK government bond yields rose, signaling firming BoE rate hike bets. This weighed against the US Dollar and earlier gains were pared. EUR/USD ended up posting its largest gain on the daily chart since August 27th.

Following the market moving Brexit news, the BoC brought volatility to the Canadian Dollar and it could have gone better. The central bank left rates unchanged at 1.50% as expected, but failed to dial up expectations of a hike in October. USD/CAD rose, but finished the day little changed. With that in mind, it would probably take better-than-expected Canadian economic data ahead to revive hawkish bets.

Despite the Brexit update, sentiment continued deteriorating after Wall Street came online. The S&P 500 and NASDAQ Composite declined, falling 0.28% and 1.19% respectively. This was led by weakness in information technology as US Senators increased prospects of regulating social media. Despite this, the anti-risk Japanese Yen ended the day weaker. Gains were offset by USD performance.

Ahead, prolonged weakness in shares could see Asia Pacific trade echo the performance on Wall Street. This may lead the US Dollar higher as markets are still facing the potential of rising trade wars between the world’s largest economies. Meanwhile, the Australian Dollar faces a trade balance report. Yesterday’s stronger second quarter GDP report could offer a data beat. But gains on that may not last given that the RBA still does not intend on raising rates in the near-term.

EUR/USD Technical Analysis – Can Gains Last?

Even though EUR/USD rose Wednesday, the pair was unable to push out of channel resistance. In fact, the pair stopped right on the 23.6% Fibonacci retracement. Given the prospects of USD gains ahead, the Euro may find its next leg lower after this temporary pullback. This would resume its decline since late August after a descent through a near-term rising trend line. Immediate support is the 38.2% level at 1.1568.

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Chart created in TradingView

US Trading Session

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Asia Pacific Trading Session

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior 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

News & Analysis at your fingertips.