FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
90%
HFM information and reviews
HFM
89%

Pound rattled by Brexit vote


31 January 2019

The Pound suffered sharp losses yesterday after an unforgettable night of votes in the British House of Commons revived fears of a ‘no-deal’ Brexit scenario.

Sterling was an easy target for bearish investors after MPs voted against the Cooper amendment that would have provided a safety net against a ‘no deal’ outcome. Although the passing of the Brady amendment came as a win for Theresa May, this proposal was immediately rejected by the European Union. With less than two months until the official Brexit divorce date and Brussels warning that the backstop is “not open for renegotiation”, the odds of an extension to Article 50 are rising. While this scenario has the potential to support the Pound as investors completely discount fears of a ‘no deal’ Brexit, the continued uncertainty will most likely cloud the currency’s medium- to longer-term outlook.

Taking a look at the technical picture, the GBPUSD is nursing its wounds today with prices trading marginally below 1.3100 as of writing. Although the trajectory points to further upside, Brexit developments have the ability to overshadow the technicals. Bulls have the ability to push prices back towards 1.3220 as long as 1.3000 proves to be reliable support. Alternatively, a breakdown and daily close under the psychological 1.3000 level is likely to invite a decline towards 1.2940.

Dollar waits on FOMC meeting


Across the Atlantic, much attention will be directed towards the FOMC meeting this evening which is expected to conclude with monetary policy being left unchanged.

Investors will be paying extra attention towards the language in the policy statement to see whether the Fed signals a pause in rate hikes. With the US government shutdown delaying the release of important economic data and uncertainty over trade talks weighing on sentiment, it may be tricky assessing how the US economy has performed. Although the Dollar continues to benefit from safe-haven flows, buying sentiment is seen taking a hit if the Fed sounds more dovish than expected.

Focusing on the technical picture, the Dollar Index is under pressure on the daily charts. Sustained weakness below 96.00 is likely to encourage a decline back towards 95.50 and 95.28, respectively.

Commodity spotlight – Gold


It has been an incredibly positive trading week for Gold thus far thanks to market caution and investors clearly avoiding riskier assets in favour of safe-haven investments.

For as long as US-China trade tensions, concerns over slowing global growth and Brexit drama continue to weigh on risk appetite, Gold is seen shining throughout the trading week. The zero-yielding metal is poised to receive a welcome boost if the Federal Reserve adopts a dovish tone. With the fundamentals driving Gold marrying the technical, we see vast upside potential. The daily close above $1,308 is seen opening a path towards $1,316 and $1,324, respectively.

Share:


Related

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

31 Oct 2022

Positive mood stalls on the “pivot” trade
Positive mood stalls on the “pivot” trade

USD slid against most of its major peers. The DXY closed a tick above its lows of 110.05. Resistance is at 110.76 while next support is 109.29. GBP gained for a sixth session in a row, a winning streak not seen since April 2021...

5 Oct 2022

OctaFX glances at current economic shifts - the good, the bad, and the strange
OctaFX glances at current economic shifts - the good, the bad, and the strange

Pandemics and health crises, political tensions, geopolitical tension flashpoints popping up, Western sanctions on significant European and Asian economies, and grave tensions between...

3 Oct 2022

The Euro rebounded from the low
The Euro rebounded from the low

After updating its multi-year lows again, the major currency pair rebounded. The current quote for the instrument is 0.9656. Last night, the local interest in risks improved a bit, helping the asset to successfully correct...

29 Sep 2022

Gold Shows Signs of Life, But Heads Towards Another Losing Month
Gold Shows Signs of Life, But Heads Towards Another Losing Month

The precious metal is largely considered as a hedge to inflation, but it has not confirmed this status during the current year. It did kick it off with a rally, but as the Fed begun hiking rates back...

28 Sep 2022

Forex and Cryptocurrencies Forecast for September 26-30, 2022
Forex and Cryptocurrencies Forecast for September 26-30, 2022

Last week, all the attention of the markets was focused on the FOMC meeting of the US Federal Reserve, which took place on September 21. The probability of another rate hike by 75 basis points (bp)...

26 Sep 2022


Editors' Picks

IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
MultiBank Group information and reviews
MultiBank Group
84%
Vantage information and reviews
Vantage
83%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.