British Prime Minister Theresa May said today that the EU and the UK are at an "impasse" in talks over Brexit. The Pound sank. Yahoo Finance's Dion Rabouin and Seana Smith talk with HSBC's Jose Rasco about Brexit, the dollar and where markets and the U.S. economy are headed.
Gold markets tried to rally during the week but found the $1215 level to be too resistive to go higher. In fact, we have formed a shooting star for the second week in a row, and that does suggest that we are really starting to try to break down from here.
The US dollar is pressing the downtrend line from a larger consolidation area in the form of a symmetrical triangle. If we can break above the weekly candle stick, that could be a very good sign. However, in the current trade war environment it’s hard to tell whether that’s going to happen or not.
The British pound initially tried to rally during the week, reaching towards the 1.33 level before pulling back to form a massive shooting star. This was in a negative sign, and I think it shows that we continue to follow the occasional headline as to where to go next. It looks as if the British pound is ready to roll over for a while, as Teresa May has suggested that the Brexit may be without a deal.
The British pound turned around rather drastically on Friday, as Teresa May announced that the end result of the Brexit negotiations may be no deal.
The Euro broke through a downtrend line during the week, testing the vital 1.18 level above. That’s an area that has been the top of the overall consolidation, so it makes sense that it caused a little bit of resistance. I believe at this point it’s likely that participants are taking a bit of a breather more than anything else.
The Australian dollar has exploded to the upside during the trading week, reaching towards the 0.73 handle. We have broken above the top of the previous couple of weeks, and I think it allows this market a little bit of bullish momentum going forward.
Gold markets got hammered during the trading session on Friday, as the $1215 level has offered too much in the way of resistance. Ultimately, this is a market that is reacting to the US dollar in general, which of course got a lift after volatility in the British pound.
The US dollar was relatively quiet during the trading session on Friday, after initially rallying. The pair tends to be correlated to the stock markets overall, which had been a bit more positive early in the day.
The British pound fell apart during the trading session on Friday, as Teresa May stated that she was sticking with her plan and wasn’t willing to bend watch when it comes to dealing with the European Union. With that being the case, the market looks very likely to continue to be very volatile.
The British pound collapsed on Friday, slicing through the previous downtrend line that had been resistance. By wiping out as much value as we have, it shows just how fickle the markets are going to be to headlines.
The Euro fails at major resistance during the early hours on Friday, as we continue to see the 1.18 level offer major supply.
The Australian dollar has rallied over the last several days but did see a lot of negativity heading into the US session on Friday. With the dip, we tested the 0.7250 region, before finding a little bit of buying pressure.