Last week, there were sharp swings in USDJPY, a decline in oil prices, and a surge in Tesla stock. What's next?
The British pound continues to go down as political risks intensify.
A lot of political uncertainties are driving the British pound down. The main of them is, of course, connected with the question: "How long Theresa May will stay a prime minister?"
Her proposal to publish a new withdrawal agreement bill (WAB) this Friday was not welcomed by her colleagues. The new agreement suggests the possibility of the second referendum and the customs union.
Reportedly, Theresa May will face another non-confidence vote tomorrow, if she does not announce the date of her departure.
What may be a game changer today?
- Theresa May will meet with the ministers today;
- The Cabinet will try to find a solution on delivering Brexit no matter what.
Technical levels for GBP/USD
The pair is testing the significant support level at 1.2603. If today's talks do not result in any breakthrough, the pair will fall further to the last December's lows. The next support will be placed at 1.2493. If the pair is supported today, it will rise to the resistance at 1.26882.
RSI is moving within the oversold zone and Stochastic formed a crossover within this zone, which may signal a possible buying opportunity.
Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Have a look at the key financial instruments on Monday, February 28. Geopolitics is currently on all news frontlines. Western nations escalated sanctions on Russia for the invasion of Ukraine.
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.