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
More View more
Real Time News
  • Dow Jones Rebound May Lift APAC Stocks, Alibaba Earnings Miss https://www.dailyfx.com/forex/market_alert/2021/08/04/Dow-Jones-Rebound-May-Lift-APAC-Stocks-Alibaba-Earnings-Miss-.html https://t.co/RYUoBEiYyn
  • Listen to my thoughts about OCBC, UOB earnings via MoneyFM podcast with Ryan Huang this morning: https://t.co/3BP2EBSMMk https://t.co/GVolwG2wZ0
  • *Dalilah Still in awe!
  • and Daliah Muhammad too, both broke the word record Unreal!
  • If you’re not watching the #Olympics you just missed an incredible performance by Sydney McLaughlin, one for the ages
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.47% Gold: 0.14% Oil - US Crude: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FJCwYfBqBn
  • The US Dollar seems to be losing its momentum against ASEAN currencies as of late. Could this be another top in USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/rVBKBuhhAb https://t.co/PSkSEjVnMC
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.51% 🇦🇺AUD: 0.12% 🇬🇧GBP: 0.06% 🇨🇦CAD: 0.03% 🇨🇭CHF: 0.02% 🇯🇵JPY: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ph5lsHjmZL
  • RT @BrendanFaganFx: AUD/USD Analysis: Aussie Dollar Points Higher After Strong Chinese PMI Data $AUDUSD #Forex #Trading Link: https://t.c…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.63%, while traders in France 40 are at opposite extremes with 82.74%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/FD0WVipVhk
Sterling (GBP): No Deal Brexit Warning; Does GBPNZD Offer Value?

Sterling (GBP): No Deal Brexit Warning; Does GBPNZD Offer Value?

Nick Cawley, Strategist

Sterling and Brexit Latest

  • Parliament votes in favor of amending Finance Bill, crimping potential tax changes.
  • GBPUSD struggles to the upside, GBPNZD may offer bulls a better option.

See how our Q1 2019 Trading Forecast for GBP can help you when trading.

Learn from our Mistakes!!!- Here are some of the top lessons DailyFX analysts learned, absorbed or suffered from personal experience in 2018.

PM May Receives a Bloody Nose in Parliament

The UK Parliament last night voted in favor of an amendment to the Finance Bill, curbing the government’s tax and spending powers in the event of a No Deal Brexit. While the vote does not carry significant power, the symbolic nature of MPs from both sides of the House coming together to vote for the amendment, highlights the difficulty that PM May will face next week to pass her Brexit bill. Effectively the House has said that a No Deal Brexit is not an option and that if PM May is defeated next week, then Parliament will play a greater role in deciding the future course of Brexit.

GBPUSD Struggles to Push Higher; GBPNZD May be a Better, Bullish, Option

Sterling continues to struggle to push higher as Brexit dominates trading. GBPUSD remains sub-1.2800 despite US dollar weakness, while EURGBP trades just under 0.9000. The British Pound is stuck in a rut against other major currencies but has recouped some of its recent losses. There is a growing feeling that most of the negative Brexit news is priced into Sterling and that any agreement will produce a sharp positive reaction for the British Pound. One such pair that may look attractive post-Brexit agreement is GBPNZD. After trading at just under GBPNZD 2.0500 in mid-October, the pair fell sharply to a low of 1.8167 in mid-December before recovering to a current level of 1.8825. A 50% recovery of the sell-off would see the pair back at 1.9310.Downside protection is provided by the 20- and 50-day moving averages around 1.8800 and 1.8730 and the 23.6% Fibonacci retracement at 1.8683.

GBPNZD Daily Price Chart (June 2018 – January 9, 2019)

Sterling (GBP): No Deal Brexit Warning; Does GBPNZD Offer Value?

If you are interested in trading, or just curious about how and why market moves occur, we have recently produced a new guide – How to Start Trading: Top Tips and Guides for Beginners – to help you start your journey.

IG Client Retail sentiment data confirms a negative picture for the GBPUSD. Retail are 57.6% net-long the pair, a bearish contrarian indicator. However, recent daily and weekly positional changes give us a mixed trading bias.

What is your view on Brexit – bullish, bearish or bored?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES