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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
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
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Just a reminder, the White House's deadline on the auto tariff decision is due today after the extension. Stay on Twitter watch. Trump seems to like make big calls shortly after the close...
  • Heads Up:🇳🇿 NZD BusinessNZ Manufacturing PMI (OCT) due at 21:30 GMT (15min), Actual: N/A Expected: N/A Previous: 48.4 https://www.dailyfx.com/economic-calendar#2019-11-14
  • RT @ABehsudi: Commerce is expected to extend a limited, temporary waiver for blacklisted firm Huawei, notwithstanding any last-minute direc…
  • RT @zerohedge: POMO is temporary, they said. It's just a mid-September tax payment, they said https://t.co/nBeHAZ9kJc
  • $MJ: Pot stock market caps going 'up in smoke' https://t.co/q3v88TVO93
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: France 40: 0.19% Germany 30: 0.11% US 500: 0.02% Wall Street: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TtF93qmxed
  • Oh, team building exercises. I'm sure that brought Knot and Holzmann around to dropping concerns about diminishing returns on negative rates and extreme monetary policy... https://t.co/5lpgsAJtbC
  • Update on #Cryptocurrencies #BITCOIN -1.15% #BITCOINCASH -2.47% #ETHEREUM -1.87% #RIPPLE -1.87% #LITECOIN -2.84%
  • RT @CNBCnow: BREAKING: The 50 attorneys general investigating Google are preparing to expand their antitrust investigation beyond the compa…
  • remaining operations will include 14-day with $35b offering
GBP/USD Volatility Spikes Amid Key Brexit Talks, NZD/USD Eyes CPI - US Market Open

GBP/USD Volatility Spikes Amid Key Brexit Talks, NZD/USD Eyes CPI - US Market Open

2019-10-15 13:15:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT –GBP/USD Volatility Spikes, NZD/USD Eyes CPI

DailyFX 2019 FX Trading Forecasts

GBP: Politics continues to drive the Pound, which trades modestly firmer after EU Chief Negotiator Barnier stated that while it will be difficult, there is still a possibility for an agreement this week. Direction in the Pound will remain headline driven in the run-up to the EU Summit with risk premium surging as option volatility spikes (GBP/USD 1-week ATM straddles at 18.4 = implied move of 258pips).

GBP/USD was largely unmoved by the UK jobs report, which showed a surprise contraction in employment (-56k vs Exp. 23k) with the unemployment ticking higher and wages dipping. Alongside this, dovish commentary from BoE’s Vlieghe in which he stated that entrenched uncertainty may require some stimulus also failed to budge the Pound.

EUR: Tepid price action in the Euro which has failed to benefit from the tailwind of Brexit optimism as key technical resistance holds in the pair. German ZEW survey showed a continued deterioration with the current conditions falling to its lowest level since April 2010.

NZD: The Kiwi is on the defensive ahead of the key NZ inflation report. Headline CPI is seen dropping to 1.4% from 1.7%, however, a reading of 1.4% would still be ahead of the RBNZ’s forecast of 1.3%.

GBP/USD Volatility Spikes Amid Key Brexit Talks, NZD/USD Eyes CPI - US Market Open

Source: DailyFX, Refinitiv

WHAT’S DRIVING MARKETS TODAY

  1. Gold Price Outlook: Setting Up for a Breakout as Trading Range Narrows?” by Nick Cawley, Market Analyst
  2. EUR/USD Price Action Setup: Critical Resistance Prevents Sharp Reversal” by Justin McQueen, Market Analyst
  3. Canadian vs US Dollar: USD/CAD Sideways Move Could End Below This Price” by Mahmoud Alkudsi, 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.

DISCLOSURES

News & Analysis at your fingertips.