Mark Carney fueled markets last Thursday by creating flames to rise to heights not seen since his predecessor Mervyn King was at the helm of the BOE. Last weeks’ super Thursday started as expected when the chair announced to no surprise, that rates were to be left unchanged at 0.75%. He then went on to announce growth forecasts were to be revised to 1.2% which is the lowest level since the financial crisis. Not stopping there this Tuesday while speaking in a town hall attended by business leaders in London he continued, stating what many fear, that a no-deal Brexit, essentially would spell chaos for global markets.

Although the BOE have lit the fire on what is already a volcanic hotseat for the government, Tuesday also saw the government announce it had agreed a post-brexit trade deal with Switzerland, which led to a rally in the pound. This rally saw the long-term floor price of $1.28 in GBPUSD held after threatening to breakout last week.

 

GBPUSD

Chart

Now that this has been held, the question this week is can the recent short-term ascending triangle continue and spark a bull run toward the $1.32? Many believe this may be short lived, as tensions mount each day that passes with dimmed lights of optimism preventing markets to gain clear sight and move forward from these volatile times.

As of now, the volatility is positioned to continued and with UK CPI numbers out on Wednesday morning, seeing how the confidence of consumers currently stands will likely be a trigger for further runs in cable as the exit countdown edges closer.

Trading any financial instrument on margin involves considerable risk. Therefore, before deciding to participate in margin trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading is recommended. This electronic mail message is intended only for the person or entity named in the addressee field. This message contains information that is privileged and confidential. If you are not the addressee thereof or the person responsible for its delivery, please notify us immediately by telephone and permanently delete all copies of this message. Any dissemination or copying of this message by anyone other than the addressee is strictly prohibited.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Inverted hammer on daily chart highlights 50-day SMA, 38.2% Fibo.

EUR/USD takes the bids to 1.1050 during early Friday. The pair formed an ‘inverted hammer” candle while following the daily chart, which in turn favors the upside towards 1.1110/13 resistance-confluence.

EUR/USD News

GBP/USD: 3-week-old resistance-line questions 100-DMA breakout

Successful trading beyond 100-day simple moving average (DMA) fails to lend much strength to the GBP/USD pair as it struggles around 1.2520 during Friday morning. A rising trend-line since August-end, seems to challenge buyers.

GBP/USD News

USD/JPY: Bears eyeing break below 107.45

USD/JPY trades modestly flat, with the bias leaning to the downside, as we wind down into the close for the week following a data-heavy number of sessions which have left more questions unanswered and the outlook murky. 

USD/JPY News

Markets unmoved by Fed cut and pause

The Federal Reserve’s latest twist in monetary policy, reducing the fed funds for a second time in two months and then pausing for instructions has left markets without a clear direction on interest rates. Equites ended mixed.

Read more

Gold holds on to recovery gains amid trade/political pessimism

In addition to bouncing off multi-month-old rising trend-line, Gold gains support form recently downbeat trade/political headlines while taking the bids to $1,500 during Friday’s Asian session.

Gold News

Forex Majors

Cryptocurrencies

Signatures