Market Update: GBPUSD, USDCAD, US30
Hi traders, so far today we have seen risk majors higher on FX, the EUR, AUD and GBP are currently trading higher to the USD and JPY. The EUR continues to hold outside downtrend lines from the daily chart. The AUD is testing range high points to the USD and JPY. The GBP remains the weakest of the bunch as Brexit updates continue to worry traders out of the currency.
Last night we saw new extensions lower to the safe havens and depending on what comes out next could hold price or set it up for new weekly lows. The GBP is very much news/comment following at the moment and as inviting as the moves look volatility is high.
Oil remains flat at this stage after yesterday’s move lower, $37, for now, is showing some support. Gold failed to hold gains yesterday mainly following risk currencies as the USD made another NY session fightback. Currently, 1947 area is seen as resistance and 1939.50 as support (4H chart).
Stock indexes in Asia are trading mixed after losses overnight in the US. The ASX200 has closed 0.83% lower. Chinese shares have ignored the US lead trading higher today, the SZSE Component 0.99% higher. Buyer confidence is also higher in Japan, the Nikkei currently 0.74% higher.
Tonight attention will remain on US tech stocks and on UK/EU developments. Currently, the news is suggesting there’s a divide with some of the UK legal advisers over bringing in legislation that could override the withdrawal agreement. It’s also being reported that Prime Minister Johnson could face a Tory revolt over plans to override the withdrawal agreement. This is already messy and potentially could get a lot worse. Just imagine if the UK went through with it! Below we breakdown a few charts we’ve been watching today.