Online Forex broker
Brexit tension is likely to take a new level now.
On Monday, the UK Prime Minister Boris Johnson confirmed his commitment to have the Brexit document agreed on by January 31. “No ifs, no buts”, as he said. Consequently, Brexit is going to be over by the end of the next year – at whatever cost.
It means that the optimism of the market, which saw the GBP soar on the victory of the Conservatives last week, will be most likely short-lived. Indeed, everyone was tired of the prolonged uncertainty around Brexit, but there is a difference between being clear and going hard. Now, the investors will almost surely have a hard Brexit – something that they were definitely not looking forward to.
The market will react accordingly.
Since August, the EUR/GBP has been declining, making an exception for a few weeks at the end of September and the first half of October. The December 12-13 drop of the euro against the British pound did not reinforce that dynamic much. In fact, the price has been on a rise to test the 50-period Moving Average. On the H4, the question is: will that be another rise like many before, when the price inched above the 50-MA to follow the decline back again, or it will be a trend-changing rise?
Against the other currencies, the GBP is showing almost an identical picture but inversed.
On the H4, we see that the surge of December 12-13 is followed by a drop to test the 50-period MA against the USD, JPY, and CHF. Although we did not include the charts for GBP/CAD and GBP/AUD, the situation there is exactly the same.
The coming days will show if the GBP wants to break through the 50-MA and keep falling. From the technical perspective, the Awesome Oscillator crossing the zero-line may be another confirmation for that, as we see it approaching there.
Follow the news. As of now, most of the media are predicting hard times ahead for the British pound, with a little to zero probability of a significant upsurge.
During the daily press briefing of Andres Manuel Lopez Obrador, it was announced that Mexico will receive 1.4 million doses of the vaccine by the end of January. Is that optimistic enough for the peso?
The US unemployment claims are announced on Thursday at 15:30 MT time.
The Canadian monthly GDP is announced on Wednesday at 15:30 MT time.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted
Manager will call your number
Next callback request for this phone number
will be available in {time}
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
