FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%
EUR/USD
1.1726
BTC/USD
48 251.96
GBP/USD
1.3741
USD/JPY
109.9290
USD/CHF
0.9322
USD/CAD
1.2769
EUR/JPY
128.9017

Respect is Within Reach!


22 October 2020

The Pound is the clear winner today after the EU’s chief negotiator Barnier said in a speech to the European Parliament this morning that an agreement with the UK was within reach. Even more positive, he stated that the EU was not out to challenge the UK’s independence, saying that the EU’s stance in talks is ‘fully compatible with the respect of British sovereignty.’ This address has gone a long way to easing tensions between the two sides and the aim is now for a deal by mid-November.

As we mentioned yesterday, political ‘deadlines’ are often much more flexible than initially thought, and so it turns out with Nancy Pelosi’s Tuesday time limit. Although the chances of a large scale deal that get through the Senate this side of the election are fading, stock markets are once again taking the ‘half-full’ approach and fully expecting a multi-trillion dollar stimulus at the start of next year with a Blue, Democratic sweep.

This is denting the dollar and pushing bond yields higher as the reflation trade gathers pace. We’ve seen increased bear steepening in fixed income recently, where long bond yields rise faster than shorter-term yields. In fact, the ten-year US Treasury bond yield hit levels earlier today not seen since the start of June.

EUR/GBP drops into strong support


With the positive Brexit news (well, the fact that talks are due to resume after a week of negative headlines!), the Pound has reacted strongly with cable surging past the mid-October high of 1.3083 and the 50% retracement of the September decline at 1.3079. There now seems to be a clear path to 1.32 after range trading over the past few weeks.

Similarly, EUR/GBP has moved abruptly lower today and is trading on its 100-day Moving Average and into strong October support. More Brexit optimism is now needed to break this confluence zone just above 0.90, so bears can push lower towards 0.89.

USD/JPY through 105


As US bond yields rise, so USD/JPY falls with technical selling through the 105 level spurring increased bearish momentum. Negative sentiment around King Dollar and the prospects for increased US government borrowing have sparked the selloff in bonds.

The downward trajectory has taken the pair to fresh one-month lows, but the biggest sell-off since August needs to consolidate these lows after such a strong move. Further weakness should challenge last month’s swing lows around the 104 mark.

#source

Related

Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Futures in the United States and Europe are up today
Futures in the United States and Europe are up today

Futures in the United States and Europe are up today after the Dow managed to gain nearly 260 points and break its five-day losing streak. Although investors...

14 Sep 2021

Forex and Cryptocurrency Forecast for September 13-17, 2021
Forex and Cryptocurrency Forecast for September 13-17, 2021

The ECB meeting on Thursday 09 September went off as expected with no surprises. The interest rate remained unchanged at 0%. The European regulator...

13 Sep 2021

Could rising equity volatility into options expiry spill into other markets?
Could rising equity volatility into options expiry spill into other markets?

While we saw some genuine strength in the Nikkei 225 and to a lesser extent Chinese/HK markets last week, we’ve seen signs that US equity indices are at risk of talking...

13 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 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.