EURGBP

A bearish ‘Death Cross’ has formed on the EUR/GBP daily chart. The pattern is defined by the 50 period moving average crossing below the 200 period moving average. In addition, the pair broke out of a bearish pennant pattern.

The recent bearish action in the pair was largely news driven. On Monday, EUR/GBP fell to a six-month low, after Nigel Farage said that the Brexit Party will not contest any seats held by the Conservative Party in the UK’s December 12th election. The news lifted the odds of UK Prime Minister Boris Johnson’s success and he reacted with the statement;

"We welcome Nigel Farage's recognition that another gridlocked hung Parliament is the greatest threat to getting Brexit done."

Ian Lavery of the opposition Labour Party fired back, citing a threat to the National Health Service (NHS):

"This is a Nigel Farage and Boris Johnson alliance with Donald Trump to sell out our country and send £500 million per week from our NHS to US drugs companies."

A Conservative Party majority would likely be a bullish outcome for sterling, as the market views that result as the most likely to lead to a resolution of the uncertainty surrounding Brexit.

Investors now keenly await President Donald Trump’s speech on US/China trade, scheduled to take place at the Economic Club of New York at lunchtime on Tuesday. Uncertainty over the trade talks weighed on the markets on Monday, after President Trump said over the weekend that there had been incorrect reporting about US willingness to lift tariffs.

Trading Futures, Options on Futures, and Foreign Exchange involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: Extra gains in the pipeline above 0.6520

AUD/USD: Extra gains in the pipeline above 0.6520

AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.

AUD/USD News

EUR/USD meets support around 1.0650

EUR/USD meets support around 1.0650

EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.

EUR/USD News

Gold surpasses $2,300 as Dollar tumbles

Gold surpasses $2,300 as Dollar tumbles

The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.

Gold News

Bitcoin price reclaims $59K as Fed leaves rates unchanged

Bitcoin price reclaims $59K as Fed leaves rates unchanged

The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting. 

Read more

The market welcomes the Fed's statement

The market welcomes the Fed's statement

The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.

Read more

Majors

Cryptocurrencies

Signatures