• Sterling hits two-month high against US Dollar as possibility of Article 50 extension grows

  • USD declines on negative data and European Central Bank decisions

  • New Zealand Dollar also dips on negative data

Sterling has continued to rise to a two-month high versus the US Dollar amidst the hope that Prime Minister Boris Johnson will eventually ask the EU to extend Article 50 again despite his assertion that he would rather die in a ditch than do so. Mr Johnson has recently changed his emphasis and it would now seem that he is determined to reach a deal with the EU before 19th October. It would seem that the EU is willing to offer an extension which would postpone the UK’s exit from the EU.

 

USD declines on negative data and European Central Bank decisions

The US Dollar has broadly declined as investors interpreted a batch of economic data releases and the European Central Bank (ECB) rate cut and Quantitative Easing (QE) extension yesterday. The ECB cut the deposit rate by 10 basis points to -0.5% and unveiled a huge bond buying program in an effort to stimulate the European economy. Optimism amongst traders has also seen a retreat from safe haven flows as it has been reported that president Trump may be willing to consider an interim trade deal with China. This would be a massive change in position and would be a welcome sign of compromise perhaps leading to a break in the trade war deadlock.

 

NZ Dollar also dips on negative data

The New Zealand Dollar weakened overnight despite slightly better than expected manufacturing data. The NZ manufacturing index rose to 48.4, however, the sub index of new orders fell to 45.6 which is the lowest in a decade and the production and employment components also fell into contraction territory. It’s clear that there has been a softening in demand and the Kiwi has suffered as a result.

 

Today’s economic releases

Today we await a raft of US economic data, including retail sales, export prices and consumer sentiment.

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD struggling to hold onto 1.10 as USD gains ground

EUR/USD is trading close to 1.10, as the US dollar gradually advances. Two White House advisers expressed contradicting accounts of US-Sino trade talks, causing confusion. Germany refrained from adding fiscal stimulus.

EUR/USD News

GBP/USD trades around 1.25 as EU pours cold water on Brexit hopes

GBP/USD is trading around 1.25, off the two-month highs of 1.2582 as EU officials cast doubts about the seriousness of the new UK proposals on Brexit. 

GBP/USD News

USD/JPY drops to one-week lows on trade war headlines

The USD/JPY fell during the American session following reports that the Montana Farm Bureau said China's delegation has canceled a planned trip to view US agriculture.

USD/JPY News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Ethereum points to the Moon as Bitcoin takes a break

ETH/USD exceeds $220 and is bidding to lead the market. Bitcoin sets a bear trap and recaptures $10,000. XRP stalls between technical levels and fails to consolidate $0.30.

Read more

Gold climbs further beyond $1500 mark, lacks follow-through

Gold edged higher for the second consecutive session on Friday, albeit remained well within a familiar trading range held over the past two weeks or so.

Gold News

Forex Majors

Cryptocurrencies

Signatures