MARKET DEVELOPMENT β GBPUSD STEADY, EURUSD RISE HALTED
GBP: Following the decision by parliament to vote for an Article 50 extension, GBPUSD is relatively stable with 1.33 continuing to remain a stumbling block for the pair. While no-deal Brexit risks continue to recede following this weekβs votes, the Pound is not out of the woods yet. (GBPUSD trade outlook with IG TV, click here).
AUD / NZD: Given the improved risk tone with equity prices edging higher, AUD and NZD have been among the main beneficiaries. As a reminder, with today being quadruple witching, upside in equity markets may be somewhat exacerbated, thus keeping high beta FX pairs supported. Looking ahead to next week, key focus will be on NZ GDP and AU Jobs data.
EUR: The Euro has found support above 1.13 amid the softer greenback, however, upside has been capped at 1.1325-30 with $3.3bln worth of option expiries rolling off at 1.1305-1.1325. Alongside this, the continued narrowing of US/German interest rate differentials have also helped provide an undertone of support for the pair for now.
CHART OF THE DAY: QUADRUPLE WITCHING
Source: Thomson Reuters
Source: Thomson Reuters, DailyFX
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WHATβS DRIVING MARKETS TODAY
- βNorges Bank: The Only G10 Central Bank to Raise Interest Ratesβ by Justin McQueen, Market Analyst
- βEURUSD Price Analysis: Further Upside Looks Limitedβ by Nick Cawley, Market Analyst
- βCharts for Next Week: EURUSD, AUDJPY, Gold Price & Moreβ by Paul Robinson , Market Analyst
- βUsing FX To Effectively Trade Global Market Themes at IGβ by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
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