This week began with a public holiday for the USA, when markets were closed for Martin Luther King Jr. Day. Money markets continued to move elsewhere around the globe, with developments for the commodity currencies, as China vowed to inject funds into its economy and counteract the slowdown. This helped oil and energy prices to rise and weakened the US Dollar a little, but was good news for the Australasian currencies, representing countries with close supplier ties to China.
 
The news, combined with talk that a China-USA meeting is nigh, also helped boost the Yuan. It may yet provide support for the Canadian Dollar, too, which faces potentially disappointing retail sales data this evening.
 
Elsewhere in Asia Pacific, the Japanese Yen fell as the Bank of Japan spoke about its plans for a continued cautious monetary policy and no change from the status quo. 

Sterling’s stiff upper lip

Meanwhile, Sterling has remained steadfast and surprisingly stronger than expected throughout the latest Brexit discussions and developments, not swaying even after Theresa May’s Plan B vote. Sterling remains stronger on hopes of a resolution, as the Opposition and UK parliament talked about offering support for a modified deal. There was some welcome good news for the UK on the economic data front, too: wages are up and unemployment is down, helping keep the Pound on an even keel – even enjoying a spot as the strongest performing currency this time last week.

For the most part, Sterling has continued to show a stiff upper lip in a tumultuous week for Brexit deliberations, rising in the run up to the first vote on the original deal, sinking a little on the narrow No Confidence result and continued fighting between UK politicians and trepidation at the swiftly put together Plan B. Then the Pound managed to recoup most of its losses as some semblance of progress appeared to be made. It’s hard to watch, but important to keep an eye on to see what happens next. We’ll keep you updated…

Not such happy news for the Euro

The Euro, on the other hand, has suffered this past week, as more data disappointments for the Eurozone and concerns about Brexit begin to bite. German production figures fell far more than expected and consumer confidence is also down in Germany; neither key indicator bodes well for the Eurozone’s economic strength. Talk of a Eurozone slowdown continues, and the European Central Bank is now in no position to raise interest rates, leaving the overall outlook for the Euro and European markets rather gloomy.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%, as widely expected. Governor Ueda's press conference is next in focus.  

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures