EUR hits a 2 week low
Pound rises above 1.2100
Nikkei 0.06% Dax 0.96%
UST 10Y 1.56%
Oil $55/bbl
Gold $1507/oz
BTCUSD $10000

Europe and Asia:
No data

North America:
USD Building Permits/Starts 8:30
USD U of M 10:00

Financial markets started the final day of the week in a decidedly better mood with risk on flows all across equity markets as sentiment stabilized a bit.

The dollar was stronger against both the euro and the yen while commodity pairs held steady and cable powered through the 1.2150 figure after a week of better than expected economic results.

There are no major economic releases today, so FX is likely to be driven by equity flows and geopolitical headlines, but assuming the markets see no further exogenous shocks on trade or political conflict, the mood is one of repair and retrace as short covering flows dominate.

The clear winner of the night us cable which is testing the 1.2150 level once again after having held support at 1.2000 earlier this week. The Brexit situation remains as clear as mud with Jeremy Corbyn flailing helplessly inn trying to compose some sort of organized opposition to no deal exit while Boris Johnson continues with his hard-nosed message enjoying a bump in the polls. The true political gamesmanship is not due to start until Parliament comes back in September and cable volatility may well return at that time, but for now the markets have decided to focus on the fact that the UK is putting forth some of the best numbers on wage growth, jobs and consumer spending in the G-7 universe even as its business sector is reeling from Brexit uncertainty.

As we noted yesterday any compromise on the Brexit negotiations should quickly verticalize sterling through the 1.2500 figure as most analysts believe the currency is deeply oversold due to political risk, but at the same time the prospect of a no-deal Brexit could create unprecedented uncertainty and we could quickly drop below 1.2000. For now, however, the market has clearly decided in favor of the pound and the pair continues to recover while politicians jockey for positioning during the last dog days of summer.

Past performance is not indicative of future results. Trading forex 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 trade any such leveraged products 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 trading on margin, and seek advice from an independent financial advisor if you have any doubts.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD: Hong Kong protests, a lack of data limit response to phase one news

With the escalating tension in Hong Kong and an absence of major data/events at home, AUD/USD shrugs off the latest trade positive headlines from US and China.

AUD/USD News

USD/JPY holds steady near 108.75 amid Hong Kong woes, trade hopes

The USD/JPY pair is seen treading water around 108.75 region, as a sense of caution prevails in Monday’s Asian trading amid escalating Hong Kong violence. All eyes to remain on US-China trade negotiations amid light US calendar.

USD/JPY News

USD/JPY holds steady near 108.75 amid Hong Kong woes, trade hopes

The USD/JPY pair is seen treading water around 108.75 region, as a sense of caution prevails in Monday’s Asian trading amid escalating Hong Kong violence. All eyes to remain on US-China trade negotiations amid light US calendar.

USD/JPY News

US Dollar Index challenges weekly lows near 98.00

The US Dollar Index (DXY), which gauges the buck vs. a bundle of its main rivals, is now accelerating the downside and threatens to test the key support at 98.00 the figure.

US Dollar Index News

Gold seesaws around $1468 amid geopolitical tension, trade optimism

With the geopolitical tension concerning Hong Kong and Iran crossing wires, optimism surrounding the US-CN trade deal seems to fail in luring the Gold sellers. As a result, Gold takes rounds to $1,468 during early Asia.

Gold News

Forex Majors

Cryptocurrencies

Signatures