Posts

The Rise And Fall Of The Pound Amidst Political Turmoil

Dear Traders,

The biggest story on Monday was the rise and fall of the British pound which were due to political headlines. After Davis’ resignation, Boris Johnson and Steve Baker followed, who did not support Theresa May’s less aggressive so-called ‘soft Brexit’ approach. This throws the stability of the U.K. government into question. Any signs that Brexit negotiations could be delayed due to political uncertainties, could increase the pressure on the pound.

GBP/USD: The pound rose to a high of 1.3363 before the sharp decline happened that sent sterling back towards a test of 1.32. A significant break below 1.32 could spur bearish momentum towards 1.3150 and 1.31. For bullish momentum to resume we would need to see a sustained break above 1.3320.

The euro reversed shy off 1.18 but found some short-term support at 1.1730. ECB President Mario Draghi reiterated his warning that trade wars pose the greatest risk to growth and stability. From a technical perspective, we will keep tabs on a break below 1.17 as long as the euro proves unable to overcome the 1.18-hurdle.

Today, traders will watch first monthly estimate of the U.K. GDP at 8:30 UTC. From the eurozone we have the ZEW Surveys due at 9:00 UTC.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2018 Maimar-FX.

www.maimar.co

Greenback Strengthens Pre-NFP

Dear Traders,

Finally, the U.S. dollar returned to its former strength pre-NFP with also EUR/USD joining the downward trend. The euro gave way to the strengthening dollar and thus, EUR/USD dropped below 1.17 after gains were capped at 1.1780.

The main topic in the market was however the fall of the British pound which came under severe downward pressure after chaotic U.K. politics put the country’s outlook on very shaky foundations. The pound came under selling pressure after UK Prime Minister Theresa May put in a disastrous performance at the annual conference of her Conservative Party. Her speech was disrupted by prankster and then by a coughing fit. That disastrous speech weakened her position as PM while the idea of replacing May in the middle of Brexit negotiations is widely viewed with horror. A replacement by Brexit hardliner Boris Johnson could make a deal with the EU harder rather than easier to reach.

The GBP/USD fell below important support-levels at 1.3150 and 1.31 and could now be headed towards a test of 1.30.

Today, all eyes will be on the Non-farm payrolls report scheduled for release at 12:30 UTC.

The U.S. September Employment report is expected to show a weaker reading due to the impact of hurricanes on southern states. Meanwhile, comments from Fed officials reinforced optimism ahead of the jobs report, saying Fed policymakers “pencil in” a rate hike in December and three hikes next year. The priced-in probability of a December rate hike is currently at 75 percent.

If payrolls beat expectations, the greenback will receive a boost and could further rise against the euro and pound.

If you want to know how we trade the payrolls release sign up for our daily signal service.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co