Sterling Rises After May Receives Support from Key Ministers

OctaFx Analyst Team OctaFX

In the United Kingdom, Brexit uncertainties continued today as EU’s chief negotiator, Michael Barnier warned that there will be difficult negotiations over the UK’s demands to maintain access to EU’s security database. He also asked UK politicians to accept the deal, saying that the two sides had made major concessions.

Theresa May received some support from Liam Fox and Michael Gove, two were key figures of the leave campaign who currently serve as Secretary of State for International Trade and Secretary of State for Environment, Food and Rural Affairs respectively. In a statement, Fox said that while he opposed many parts of the draft, it was better than leaving the EU without a deal. The FTSE 100 declined by 70 basis points while sterling was largely unchanged. This was the worst week for sterling since August.

Gold rose today as volatility surrounding Brexit and the risks about the stock market continued. As a safe haven, gold tends to move up when there are risks. The gain also came after North Korea tested an ultramodern tactical weapon. This was the first major test of a weapon after Kim’s meeting with Trump in Singapore and could possibly explain why the Japanese yen climbed against the USD today.

The euro declined slightly against the USD after the EU released inflation numbers for October. During the month, the CPI increased by 2.2% as expected. This was higher than the 2.1% increase in September. On a MoM basis, the CPI increased by 0.2%, which was in line with expectations. The core CPI rose by an annualized rate of 1.1%, which was in line with expectations. In a statement at Frankfurt, Mario Draghi remained upbeat about the economy but warned that policy makers will continue to be on guard in the coming months.

EUR/USD

The EUR/USD pair fell slightly today against the USD after the CPI numbers were released. Nonetheless, the pair is continuing with the upward trend started on Monday when it was at the 1.1213 level. The moving averages and the Parabolic SAR indicators point to a continuation of the upward trend. This is confirmed by the RSI and the MACD indicators. However, this could change depending on the news that emerges during the weekend.

GBP/USD

The GBP/USD pair moved slightly higher after Theresa May received some support from her members of cabinet. It reached an intraday high of 1.2850. This was higher than yesterday’s low of 1.2720. The upward trend seemed to be heading to the 38.2% Fibonacci Retracement level of 1.2880. Signs of a continued upward trend were shown by the double EMAs, which started a crossover. Over the weekend, it is likely that more Brexit news will influence the movement of the price.

XAU/USD

Gold continued the upward trend started on Tuesday. The price has moved from a low of $1196 to today’s high of $1218. The XAU/USD pair is now trading at 1218, which is the highest level since Monday this week. The upward trend is supported by the double EMAs, which are pointing to more upward movements. The RSI was unchanged and is currently at 63. If the upward trend continues, the pair will likely test the important support of 1230.

Author

OctaFx Analyst Team

OctaFX

OctaFX is a market-leading forex broker, providing personalised forex brokerage services to customers in over 100 countries worldwide.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.