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
Mixed
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
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
GBP/USD
Mixed
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
USD/JPY
Mixed
More View more
Real Time News
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/FuLPdCLpKs
  • Elections anticipation may sabotage trend development next week, but that won't curb volatility between stimulus talks, Covid cases, FAANG earnings and 3Q GDP updates. Top of my watch list this week will be $EURUSD. My video on it all: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/24/EURUSD-a-Top-Volatility-Risk-This-Week-but-Election-Anxiety-May-Keep-Markets-From-Trends.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/t14eT2SMa7
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/RfUWJdNjzk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/EzdjTZEbx2
  • The Dow Jones, S&P 500 and AUD/USD could be at risk of extending losses as retail investors increase upside exposure. What are key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/ivQmFUTGdU https://t.co/KuIoM7g9E3
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/FBT1eSZdjF
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/LRL1iD3JDt
  • Even though the Australian Dollar lost some ground this week, support levels held. Bearish developments are brewing in $AUDUSD and $AUDJPY but remain unconfirmed. What else does #AUD face ahead technically? - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/24/Australian-Dollar-Technical-Forecast-AUDUSD-AUDJPY-EURAUD-GBPAUD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0gHyXW1vHh
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/9qcanKW0uT
  • Third wave? We haven’t beaten the first wave. Until the virus is under control, the US economy won’t be able to properly heal, plain & simple. The lack of a competent response saps courage. Defeat the virus, then get people back to work. In that order. https://t.co/8R8IyTZejM
Yen, Franc Up as Pound Drops on Brexit Bedlam But Stocks Hold Up

Yen, Franc Up as Pound Drops on Brexit Bedlam But Stocks Hold Up

2019-10-20 23:55:00
Ilya Spivak, Head Strategist, APAC
Share:

BREXIT, YEN, US DOLLAR, BRITISH POUND, FRANC, STOCKS - TALKING POINTS:

  • Pound drops as UK Parliament delays vote on PM Johnson’s Brexit deal
  • Risk-off response from G10 FX sees Yen, Swiss Franc, US Dollar higher
  • S&P 500 stock futures hint overall market sentiment may hold up for now

Where will markets end 2019? See our Q4 forecasts for currencies, commodities and stock indexes!

The anti-risk Japanese Yen and US Dollar rose while the British Pound plunged against most major currencies after UK Prime Minister Boris Johnson failed to secure the votes needed to pass the Brexit deal he struck with the EU. Parliament opted to withhold a definitive decision on the proposal.

The sentiment-driven Australian Dollar weakened as worries about European political instability soured the market-wide mood at the Monday APAC trading open. The Euro was also pressured while the Swiss Franc – a frequent regional haven of EU turmoil – dutifully rose.

Yen and US Dollar up as Pound drops after Brexit deal vote delay

Chart created with TradingView

UK GOVERNMENT TO PUSH FOR BREXIT VOTE, PREPARE FOR NO-DEAL OUTCOME

The way forward appears clouded. Mr Johnson sent the EU an unsigned request for an extension of the Brexit timetable along with another letter arguing against postponement. The latter seems to reflect the Prime Minister’s dogged intent to withdraw from the EU by October 31, no matter what.

Johnson is expected to make another push for a “meaningful vote” on his Brexit deal on Monday. Government ministers struck an optimistic tone on Sunday, saying they now expected to have enough support to get a favorable outcome.

Nevertheless, the Operation Yellowhammer contingency plan preparing the administration to deal with the fallout of a no-deal Brexit at month’s end was activated. The EU is reportedly prepared to offer an extension and may even push for a longer one. That seems anathema to Mr Johnson however.

STOCK MARKETS IN WAIT-AND-SEE MODE, FOR NOW

Financial markets seem willing to give policymakers the benefit of the doubt for now. Bellwether S&P 500 stock index futures are tracking conspicuously flat, suggesting that a sweeping risk-off shift in prevailing sentiment trends is probably not in the cards immediately.

That might reflect expectations that global central banks – and most importantly, the US Federal Reserve – will move to expand monetary stimulus more readily against the current backdrop. Indeed, Treasury bond yields fell alongside Sterling as Monday’s session got underway.

The dividend yield on global equity averages around 2.5 percent, making stocks appear more attractive than cash on debt as the relative return on both collapses. Absent a crisis-level liquidation across the asset spectrum, this seems to be enticing enough to underpin sentiment, at least for the moment.

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES