|Day's Range||1.279 - 1.29|
|52 Week Range||1.2481 - 1.4377|
The U.S. dollar loses its strength in late Friday trading amid President Donald Trump’s signing of a spending bill that will avoid a renewed partial government shutdown and his declaration of a national emergency on border security.
The British pound has fallen again during the week but is testing a rather important area on the chart that could cause a lot of market reaction, if we can get the proper headlines right along with it.
The British pound initially fell during trading on Friday but found enough support at a crucial juncture to turn things around and show fight yet again. This continues to be a lot of noise, but that’s typical if you’re going to get a trend change.
London’s main stock index was headed for its third straight week of gains, rising modestly on Friday after data that showed strength in retail sales.
Investing.com – The dollar was modestly higher against its rivals Friday and remained on track to post consecutive weekly gains for the first time since November. The dollar's rise came as traders digested mostly negative U.S. economic data.
U.K. Prime Minister Theresa May suffered yet another Brexit defeat on Thursday, as pro-leave politicians refused to support her European Union withdrawal strategy in a parliamentary vote. A majority of 45 British politicians rejected a motion that reiterated government plans to seek changes to the so-called Irish backstop — the contentious plan to avoid a hard border in Ireland — and swerve a no-deal Brexit. The move has broken the party’s fragile truce over Brexit, with pro-EU Conservatives taking to the airwaves last night and this morning to complain about the inability of their Brexiteer colleagues to compromise.
With the poor economic numbers from the US, the market is likely to favour a move to the upside and try moving towards the top of the consolidation phase to the 1.15 handle. The pair is now testing support at the 50% Fibonacci scale, and next major support is at the 1.27 level, which is the 61.8% Fibonacci retracement level. The market is likely to remain choppy and with poor economic numbers from the US, AUD is likely to gain a bit of momentum.
Theresa May’s troubles continue to pin back the Pound and the stats have provided little help. More swings on the cards later today.
Investing.com -- The dollar was edging higher against major European currencies early Friday in Europe after weak Chinese inflation data overnight reinforced concerns about global growth.
The U.S. dollar was weaker Thursday in a volatile session that was marked by a round of weaker-than-expected economic data that briefly overshadowed optimism over U.S.-China trade talks. Meanwhile, the euro and British pound grappled with slowing growth and continued drama surrounding Britain’s efforts to exit from the European Union with a new trade agreement. The ICE U.S. Dollar Index (DXY) a measure of the currency against a basket of six major rivals, first flipped in to negative territory during Thursday’s session after retail sales data for December showed an unexpected 1.2% decline, the worst drop in nine years.
The British Parliament on Thursday rejected U.K. Prime Minister Theresa May's Brexit strategy, adding to the government's tally of lost parliamentary votes, as expected. Prime Minister May had aimed for a re-endorsement of her plan to secure changes to the Brexit deal she agreed with the European Union late last year, which would allow the U.K. to avoid a hard, no-deal Brexit. May's initial deal was rejected by Parliament in January, though lawmakers also voted in favor of avoiding a hard Brexit. Amendments are not legally binding but indicate a government's viability and support. The defeat adds to May's poor performance in parliamentary votes over the past months. May was not in Parliament to respond to the defeat. The U.K. is slated to exit the EU on March 29. As of now, no deal governing the U.K. trade and other relations with Brussels is in place. The British pound reacted little to the vote, holding its losses, last at $1.2806, down 0.3%. Similarly, the euro held its gains against sterling, buying £0.8821, up 0.6%
The British pound continues to grind back and forth overall, as we have seen a lot of concern when it comes to the Brexit. One headline after another comes out as politicians look to posture, wrecking the markets in the process.
London stocks posted modest gains on Thursday, as investors continued to look to global trade talks for inspiration, while balancing some grim economic news from Europe.
Investing.com - The U.S. dollar was roughly unchanged against its rivals Thursday as analysts downplayed data showing U.S. retail sales suffered their biggest drop since 2009.
British Prime Minister Theresa May faces a Valentine’s Day defeat in the U.K. parliament, as pro-Brexit politicians threaten to reject her Brexit strategy in a vote this evening. Brexit-backing MPs are threatening to sabotage what the British government had hoped would be a simple re-endorsement of May’s plan to secure changes to her EU withdrawal deal, which center around a contentious plan to avoid a hard border in Ireland. Pro-Brexit parliamentarians object to the latter, arguing that exiting the European Union without a deal might be the best option for the U.K.
The pair pulled back significantly during the Wednesday’s session, breaching the 1.13 level again to reach down towards the 1.1280 level. The pair is witnessing a lot of issues above the 1.13 level and until unless it breaks above 1.1350 level, the market will continue to struggle rallying higher. Going ahead, the pair will continue to consolidate, trading between 1.12 and 1.15 level. …Read MoreGBP/USD
Brexit and Trade talks are on the political agenda, while Germany’s GDP numbers and retail sales figures out of the U.S will be in focus on the data front.
Investing.com - The euro and the British pound fell to multi-week lows against the firmer U.S. dollar on Thursday as weak economic data out of the euro zone and concerns over Brexit weighed.
The U.S. dollar inches higher against many of its rivals early Wednesday after a brief period of jerky trading, as market participants make sense of rumors surrounding Brexit, central bank updates and myriad economic data including inflation in the U.S.
The British pound pulled back a bit after rallying quite significantly during the day on Wednesday. By doing so, the market looks as if it isn’t quite ready to go higher, but I also recognize that there is a massive amount of support underneath.
London stocks were climbing Wednesday, driven by growing optimism over a trade deal between the U.S. and China that kept global stocks on a positive path.