MARKET DEVELOPMENT – US Dollar Price Action: GBP/USD, EUR/USD
DailyFX 2019 FX Trading Forecasts
USD: The greenback is marginally positive for the session as we close out the week. The 200DMA has curbed the USD from its recent decline, however, there has been little in the way of notable buying as the USD continues oscillate around the 200DMA. With little on the economic calendar much of the focus will be on next weeks key risk events with the US releasing its latest GDP, NFP and ISM readings, while central bank decisions from the Fed, BoC and the BoJ will add to the packed schedule.
GBP: The Pound eyes a move towards 1.28 with the currency down 0.3% on the session and is looking to post its first weekly drop in a month as Brexit uncertainty persists. The EU have agreed to extend the Brexit deadline; however, they will wait for developments in UK parliament before announcing the length of time. Meanwhile, UK PM Johnson has continued to face challenges in regard to his call for a general election on December 12th.
EUR: Much like Sterling, the Euro has also pulled back from its recent highs, eyeing a move to its weekly low of 1.1090. Alongside this, on the technical front, EURUSD is testing the rising trendline from the 2019 low, which may curb losses for now. However, a closing break below could see a move towards 1.1050.
Source: DailyFX, Refinitiv
Economic Calendar (25/10/19)
Source: DailyFX,
WHAT’S DRIVING MARKETS TODAY
- “Most Volatile Currencies Next Week - GBP/USD, AUD/USD” by Justin McQueen, Market Analyst
- “Euro and Gold May Rally, US Dollar Falls: Charts for Next Week” by Paul Robinson, Currency Strategist
- “EUR/USD Forecast - Price Action Continues to Press Lower” by Nick Cawley, Market Analyst
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
