GBP slips on PM May's comments on Brexit

9 January, 2017

The British pound came under pressure in early Asian trading this morning as the UK's Prime Minister, Theresa May said that Britain would definitively break away from the EU, in a televised interview even as the country is yet to begin any negotiations with the European Union. The British pound was also hit by Friday's U.S. jobs report which sent the cable tumbling lower and giving up the strong gains made just days before. The UK's Supreme Court is also likely to give its judgment on whether the UK government should seek parliamentary approval before triggering Article 50 talks. On the economic front, the calendar is light today with mostly second tier data on the cards.

EURUSD intra-daily analysis

EURUSD (1.0524): EURUSD posted a reversal off 1.0600 price level on Friday to give up half the gains made the day before. Price remains trading within 1.0600 and 1.0500 levels with further bias likely to extend on a breakout from these levels. On the 4-hour chart price action remains fairly balanced although the current declines near 1.0533 could trigger near-term declines towards 1.0400 if the bearish momentum gains pace. The weekly chart on EURUSD shows prices being repeatedly rejected near the lows of 1.0400 which could indicate a short-term potential reversal to the upside.

GBPUSD intra-day analysis

GBPUSD (1.2194): GBPUSD has gapped lower on today's open with the price now seen testing 1.2200 support level. The follow-through from Friday's bearish price action could indicate renewed declines in GBPUSD. On the 4-hour chart, a session close below 1.2200 could signal further weakness to come although the price could still retest 1.2287 resistance level. Mind the Stochastics on the 4-hour chart which could post a bullish reversal on the divergence that is currently forming.

USDJPY intra-day analysis

USDJPY (117.47): USDJPY has pushed higher once again after falling below the support level at 116.00 last week. Price action remains within grasp of 118.00 resistance level which could be tested in the near term. Further gains can be seen coming only on a breakout above 118.00. The daily chart's Stochastics shows the potential bearish divergence that could be formed with the oscillator failing to confirm the highs in price. Still, further validation is required. On the 4-hour chart, price action remains bullish as resistance at 118.50 is clearly seen with price turning flat near this level.


Source link  
Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...

EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...


Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...

US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...


US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

Markets brace for UK Super Thursday

The Bank of England meeting, industrial and manufacturing production numbers and fresh inflation forecasts...

China's consumer prices increase

Consumer price index in China rose 1.2% on an annualized basis in the month of April, managing to beat estimates of 1.1%...

  


Share: