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.

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
Bullish
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
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: -0.07% 🇨🇦CAD: -0.14% 🇦🇺AUD: -0.21% 🇪🇺EUR: -0.33% 🇬🇧GBP: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BZxN8uc0fV
  • Heads Up:🇺🇸 Initial Jobless Claims (17/OCT) due at 12:30 GMT (15min) Expected: 860K Previous: 898K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Continuing Jobless Claims (10/OCT) due at 12:30 GMT (15min) Expected: 9500K Previous: 10018K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Jobless Claims 4-Week Average (17/OCT) due at 12:30 GMT (15min) Previous: 866.25K https://www.dailyfx.com/economic-calendar#2020-10-22
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/7HzovoH1fH https://t.co/ONvvCnYshL
  • 🇲🇽 Mid-month Inflation Rate YoY (OCT) Actual: 4.09% Expected: 4% Previous: 3.9% https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇲🇽 Mid-month Inflation Rate YoY (OCT) Actual: 4.09 Expected: 4% Previous: 4.1% https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇲🇽 Mid-month Inflation Rate MoM (OCT) Actual: 0.54% Expected: 0.46% Previous: 0.16% https://www.dailyfx.com/economic-calendar#2020-10-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.78%, while traders in EUR/USD are at opposite extremes with 74.56%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BMzJqfgfr8
  • Heads Up:🇵🇱 Monetary Policy Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-10-22
GBPUSD Suffers as Brexit Talks Risk Failing, PM May Pressured to Resign - US Market Open

GBPUSD Suffers as Brexit Talks Risk Failing, PM May Pressured to Resign - US Market Open

2019-05-08 12:45:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT – GBP Drops, RBNZ Cuts to Record Low Interest Rates

DailyFX Q2 2019 FX Trading Forecasts

GBP: The Pound is the notable underperformer across the board with GBPUSD testing 1.3000 support. Much of the weakness had stemmed from reports that talks between the government and the Labour party are looking set to fail, which in turn reduces the likelihood that the Brexit deadlock will be broken anytime soon. Alongside this, the pressure continues to mount for Theresa May to announce her departure plans by today or face the risk of being ousted (potentially via the 1922 committee altering leadership election rules). As such, with the risks of PM May being replaced rising, pressure remains on the downside for the Pound and given that the most likely alternatives according to betting markets are potentially a harder Brexiteer than PM May (see here) upside seems limited for GBP. Key support situated at 1.2890.

NZD: The RBNZ lowered interest rates to a record low 1.5% overnight in what was a 50/50 rate decision. The Kiwi came under significant pressure initially, hitting a low of 0.6530 before retracing much of the losses. While the central bank opened the further easing, the decision itself had been based on the consensus of the committee and not unanimous, while the RBNZ Governor noted that the outlook going forward looks more balanced than prior to the meeting, raising questions as to whether this is a one and done cut. Nonetheless with the risk environment is continuing to deteriorate amid the rising US/China trade tensions, which in turn keeps the Kiwi on the backfoot.

EUR: The Euro has been relatively steady throughout the session, oscillating around the 1.12 handle as EURGBP buying keeps the currency supported. Elsewhere, German Industrial output had surprised to the upside (0.5% vs. Exp. -0.5%) which in turn boosted sentiment for the Euro. However, with the overhang of rising trade tensions between the US and China, gains have been somewhat marginal for the Euro.

Gold: As the trade tensions continue to weigh on equity markets, gold prices have been among the beneficiaries with the precious metal making a break above $1287 (61.8% Fibonacci retracement) to test the descending trendline from the 2019 peak. Source reports this morning noted that China had backtracked on much of the legal issues throughout the text of proposed US trade agreement. However, despite this, the general consensus is that an agreement will be reached in the near-term.

GBPUSD Suffers as Brexit Talks Risk Failing, PM May Pressured to Resign - US Market Open

Source: Thomson Reuters, DailyFX

DailyFX Economic Calendar: – North American Releases

GBPUSD Suffers as Brexit Talks Risk Failing, PM May Pressured to Resign - US Market Open

IG Client Sentiment

GBPUSD Suffers as Brexit Talks Risk Failing, PM May Pressured to Resign - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. Dow Jones 200-day Targeted, Bearish S&P 500 Chart Pattern Triggered” by Paul Robinson, Currency Strategist
  2. Bitcoin (BTC) Rally Hits a Wall on Binance Hack News” by Nick Cawley, Market Analyst
  3. Crude Oil Analysis: Bearish Alert Sees Key Support in Focus” by Justin McQueen, Market Analyst
  4. Gold Price Outlook: Strength to Persist if US-China Trade Talks Fail” by Martin Essex, MSTA , Analyst and Editor
  5. Using FX To Effectively Trade Global Market Themes at IG” 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

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

DISCLOSURES