Broad-based GBP selling was the main underlying theme in Asia this Monday, driving risk-off flows across the financial markets on doubts over the UK PM May’s leadership. Hence, GBP/USD’s 40-pips gap down in early trades pushed the greenback broadly higher, rescuing the USD bulls after last week’s tumble on the US tax reform uncertainty. Amid resurgent USD demand, the Kiwi suffered the most, followed by Euro and Yen. The safe-haven gold remained buoyed amid weaker Asian equities and Treasury yields.
Main topics in Asia
GBP/USD gaps to 1.3158 by 40 pips on letter of no confidence in PM May
GBP/USD opened in Sydney in a bearish gap on the back of the weekend news article from The Times that was reporting….
Fed's Harker - Fed does not have to remove a lot of accommodation to return to neutral
Comments from Fed's Harker crossing the wires via Reuters…
EU’s Barnier: EU preparing for possible collapse of Brexit talks
BBC reports comments from the EU's chief Brexit negotiator, Michel Barnier, from his weekend interview with the French newspaper Le Journal du Dimanche.
Fed policies won't have direct linkage to BOJ steps -BOJ official - Reuters
A senior BOJ official said on Monday that the Fed policies will not have a direct link to what the Bank of Japan (BOJ) does, but could affect BOJ's decisions via impact on the global economy.
UK consumer spending drops by most in over four years - Visa
Data from the payment company Visa published today showed the overall spending fell by 2% annually in October; the quickest decline since September 2013.
RBA's Debelle speech: Rate hike likely to come from a good economy and not a shock
Guy Debelle, Deputy Governor of the RBA is speaking at the Business Investment in Australia at the 2017 UBS Australasia Conference, Sydney, saying:
Key Focus ahead
Heading into Europe, markets are poised for a quiet start to a busy week ahead, with no significant first-tier macro news on the card from across the globe, with the Canadian markets closed in observance of Remembrance Day. We have the second-liner German WPI just ahead of the Europe open. Meanwhile, the BoJ Governor Kuroda is scheduled to speak later on Monday about monetary policy at the University of Zurich.
GBP/USD: Vulnerable below 1.3100, UK politics back in play ahead of a Big week
The GBP/USD pair reversed sharply from near one-week tops and witnessed a bearish 40-pips gap shortly after the Asian opening bells this Monday, as investors reacted to the weekend’s political headlines from the UK.
EUR/USD - Corrective rally stalled at key MA, eyes US tax debate
The corrective rally in the EUR/USD ran out of steam at the descending 4-hour 100-MA on Friday as the US 10-year Treasury yield rose more than 6 basis points to 2.4 percent.
Sell EUR/GBP this week on BOE/ECB monetary policy divergence – Barclays
Analysts at Barclays offer their thoughts on the EUR/GBP trade in the week ahead, in light of the contrasting views expected from the BOE Governor Carney and ECB Chief Draghi, when they speak at the ECB’s Central Bank Communications Conference on Tuesday.
UK week ahead: CPI and retail sales - Danske Bank
Analysts from Danske Bank, expect the CPI figures for October to show a small uptick, driven mainly by lingering effects of the weak GBP.
Key events for the week ahead - Nomura
Analysts at Nomura offered their outlook on the week's key events.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.