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GBP/USD Rallies as Bears Take Cover, USD/JPY Tests Key Resistance- US Market Open

GBP/USD Rallies as Bears Take Cover, USD/JPY Tests Key Resistance- US Market Open

Justin McQueen, Strategist

MARKET DEVELOPMENT – GBP/USD Bears Take Cover, USD/JPY at Key Resistance

DailyFX 2019 FX Trading Forecasts

GBP: Sterling bears are drastically taking cover as the continued short squeeze propels GBP/USD through the 1.2300 handle. However, while the risk of a no-deal Brexit has diminished slightly, uncertainty persists, particularly with a general election seemingly inevitable. As such, while the Pound has had its strongest 2-day advance over the greenback this year, caution is to be had.

SEK: The Swedish Krona is among the top performers throughout the European session following the Riksbank rate decision. While the central bank had lowered its rate path, they had surprised many by continuing to forecast that the repo rate will be raised by the year-end or Q1 2020, somewhat more hawkish than expected and thus boosting SEK.

JPY / CHF: Safe-haven currencies are on the backfoot amid the boost in risk appetite. Late yesterday, the US and China confirmed that face to face talks will take place in October, while another defeat for UK PM Johnson over the Brexit delay bill has slightly eased concerns in regard to a no-deal Brexit. As such, USD/JPY is testing resistance at 107.00 in which a break above opens the door to a move towards 107.50.

GBP/USD Rallies as Bears Take Cover, USD/JPY Tests Key Resistance- US Market Open

Source: DailyFX

WHAT’S DRIVING MARKETS TODAY

  1. Bitcoin (BTC) Price Battles Recent Highs as Technical Indicators Clash” by Nick Cawley, Market Analyst
  2. Gold Price and Silver Outlook: Too High to Buy, Too Strong to Short” by Paul Robinson, Currency Strategist
  3. Canadian Dollar Technical Analysis Overview: USD/CAD, GBP/CAD, EUR/CAD” by Justin McQueen, Market Analyst
  4. 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.

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