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GBP/USD Shoots Higher, AUD/USD Breaks Resistance - US Market Open

GBP/USD Shoots Higher, AUD/USD Breaks Resistance - US Market Open

Justin McQueen, Strategist

MARKET DEVELOPMENT – GBP/USD Shoots Higher, AUD/USD Breaks Resistance

DailyFX 2019 FX Trading Forecasts

GBP: The Pound has shot higher, hitting its best levels in 6-weeks against the Euro and US Dollar. Sentiment in recent sessions has shown a slight easing of no-deal Brexit risks as parliament look to pass the Brexit delay bill. Consequently, given that speculators had priced in negative news for the Pound, a wave of short covering has propelled the currency higher. That said, GBPUSD had been given a further boost this morning on the back of better than expected monthly GDP data, in which output grew by 0.3%, subsequently, cooling concerns that the UK entered a technical recession in Q3.

GBP/USD Shoots Higher, AUD/USD Breaks Resistance - US Market Open

EUR: Market participants somewhat tentative in the Euro, which is flat against the US Dollar, ahead of the main focus of the week in the form of the ECB meeting. Questions surrounding the ECB is a matter of how much stimulus they will provide, particularly with regard to restarting of QE, which over the past week has seen the more hawkish rate setters attempt to scale down expectations of a large QE purchase program.

GBP/USD Shoots Higher, AUD/USD Breaks Resistance - US Market Open

AUD: As hopes of global stimulus underpins equity markets, high beta currencies have been trading modestly firmer, most notably AUD/USD, which has made a firm breach of resistance at 0.6830. Subsequently, eyes are now for a test of the 0.6900 handle with room for further upside, given how short the market is of the Australian Dollar.

GBP/USD Shoots Higher, AUD/USD Breaks Resistance - US Market Open

Source: DailyFX

WHAT’S DRIVING MARKETS TODAY

  1. Sterling (GBP) Price Drifts Lower on Brexit Uncertainty, Hard Data Flow Next” by Nick Cawley, Market Analyst
  2. Crude Oil Technical Outlook: Facing Familiar Resistance” by Paul Robinson, Currency Strategist
  3. GBP/USD Rise Fuelled by Short Squeeze, EUR/USD Bearish Bets Rise Sharply – COT Report” 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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