2020-09-11 • Updated
The pound has slumped against other major currencies amid fears over the no-Brexit deal. More details have recently come out over EU-UK tensions. Let’s get into them straight away.
The European Commission claimed on Thursday that it would give a deadline up to the end of September to the United Kingdom to back out the Internal Market Bill (IMB), which violates the initial EU-UK agreement, reached in 2019. If the UK doesn’t withdraw the bill, the EU will take legal action. Further negotiations will continue next week.
The main sticking point is Northern Ireland’s border. The initial agreement was created to avoid the need for a hard border between Northern Ireland and the Republic of Ireland. However, the new legislation, offered by Boris Johnson, may undermine it. The EU threatened the UK with financial, agricultural, and trade sanctions. Nevertheless, the UK Prime Minister stay confident to pass the bill, shrugging off the EU’s disagreement. As a result, the GBP is falling amid Brexit uncertainties.
Elsewhere, the mixed data from the UK came out today. Construction output, industrial, manufacturing production, and GDP exceeded expectations, while goods trade balance and index of services came out worse than the forecasts. Let’s look at the charts.
The yesterday ECB statement underpinned the euro, which led to huge swings on the EUR/GBP chart. The pair has approached the resistance of 0.9300. If it manages to break it, it will surge to the March high of 0.9415. In the opposite scenario, if it falls below the low of March 23 at 0.9150, the way to the key psychological mark of 0.9000 will be clear.
Besides, there are large bearish movements on the GBP/CAD chart. The move below the low of June 19 at 1.6750 will drive the pair down to the March low of 1.6600. Resistance levels are at the key psychological mark of 1.7000 and the strong resistance of 1.7200, which it has failed to cross in the June-July period.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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