|Day's range||1.272 - 1.275|
|52-week range||1.2481 - 1.3491|
Australian Federal Elections go the way of the Aussie Dollar, with Brexit, EU elections, stats, and trade war chatter in focus in the week ahead.
Investing.com - After a week dominated by escalating trade tensions between the U.S. and China the trade war looks likely to remain to the forefront of investors’ minds, but this week will also feature Federal Reserve minutes, U.S. retail earnings and economic data as well as European Union elections.
The U.S – China trade war continued to grip the markets and, while the China economy showed cracks, U.S stats impressed.
Robust growing USD Index pushed down all its major rivals. Hence, EUR/USD pair plunged despite positive Euro-specific data. Meanwhile, the Cable continued to douse in fall amid Brexit chaos.
The British pound initially tried to rally during the week, but then broke down almost immediately, leaving the 1.30 level in the rearview mirror. After that, we have broken down below the 1.28 level, and now things are looking rather ugly.
The British pound got absolutely hammered during the trading session on Friday again, as we continue to see a lot of concern around the Brexit. This is a markets are reacting to the potential resignation of Theresa May, and the unknown after that.
U.S. stock benchmarks Friday morning traded solidly lower, putting the thee main indexes on a path to book weekly losses and halt a three-session advance amid further investor concerns about trade relations between the U.S. and its international counterparts. The Dow Jones Industrial Average traded about 94 points, or 0.4%, lower at 25,772, the S&P 500 index declined 0.4% at 2,864, and the Nasdaq Composite Index retreated 0.5% at 7,857, in early trade. For the week, the Dow was set for a weekly decline of 1%, the S&P 500 was poised for a weekly slide of 0.8%, while the Nasdaq was on track to fall 1%, according to FactSet data. Heightened trade tensions appeared evident in comments from state-controlled media, including the Communist Party's People's Daily and Xinhua News Agency, which published scathing attacks on U.S. actions in recent days. "The U.S. has made an irrational act in trying to blackmail China with tariff hikes, which will be proven over time to be shortsighted and doomed to fail," read an editorial in the Xinhua early Friday. Meanwhile, the British pound was under pressure against the dollar amid growing uncertainty about Britain's plans to exit from Europe's trading bloc. In corporate news, shares of Pinterest Inc. were looking at double-digit percentage losses, after the social-media company announced Thursday evening that its first-quarter losses of $41.4 million were three times as large as analysts had expected. Meanwhile, Chinese coffeehouse chain Luckin Coffee Inc. , a potential rival to Starbucks Corp. will list their shares on the Nasdaq stock exchange Friday, after pricing its shares at $17, with a plan to sell 33 million shares.
The British pound remains under pressure as talks between the U.K.’s Conservative and Labour parties collapse without an agreement on how to pursue Brexit. Meanwhile, the Japanese yen finds support as trade-war concerns put renewed pressure on global equities.
The pound [s:GBPUSD] dropped Friday as chances dwindled that the U.K.'s two largest political parties can hash out a Brexit agreement. Six weeks of talks between senior lawmakers from the ruling Conservative Party and main opposition Labour party have ended with no deal, increasing the odds for a hard break with the European Union. Prime Minister Theresa May had pinned her hopes of her leadership surviving the summer on a final vote on her unpopular Brexit deal. Hard-liner Brexiteer Boris Johnson's admission Friday that he would "of course" stand for the Conservative leadership fueled the market reaction. Labour leader Jeremy Corbyn told reporters Friday morning that talks had gone as far as they can go and his party will oppose May's Brexit proposal. Sterling traded down about 0.2% against its U.S. counterpart at $1.2764 compared to $1.2796 in late New York trading Thursday. The pair had touched a low of $1.2755 Friday. Euro-pound rose 0.2% to 0.8752 pound, earlier at 0.8755.
Trade saber-rattling and a dollop of Brexit anxiety pushed European markets down in early trading Friday. The pound, (GBPUSD) which swooned 0.6% Thursday on the latest Brexit news, dipped an additional 0.1% Friday to $1.2778. The China-U.S. trading narrative has dominated market commentary this week, largely in the absence of other major developments—or for that matter, developments in the negotiations themselves, which are paused.
The Cable tumbled to two months low levels. May might arrange the voting sessions on the first week of June. Tories stay cherished as PM’s resignation plans sets in.
Traders are taking advantage of a lull in news flow stemming from US-China trade tensions to send Asian stocks higher.
A relatively quiet economic calendar leaves Brexit and trade war chatter in focus. Is the trade spat about to get worse and can Theresa May deliver?
Investing.com - The U.S. dollar edged down on Friday in Asia but still hovered near a two-week high following the release of robust U.S. housing data and a better-than-expected weekly jobless claims report.
It’s back. Despite repeated parliamentary votes to rule out the prospect of the U.K. leaving the European Union without a deal in place to govern its relationship with the bloc, the revived threat of a “no-deal” Brexit is putting renewed pressure on the British pound.
The British pound fell significantly again during the trading session on Thursday, as we continue to see Sterling Boulevard. That being said, it’s a bit difficult to start shorting now, because quite frankly you would be “chasing the trade.”
EUROPE MARKETS European markets rose despite an effective U.S. ban on Huawei telecommunications equipment underscored the potential for ongoing trade tensions with China. How did markets perform? The Stoxx 600 (XX:SXXP) edged up 0.
The GBP/USD pair tumbles down the road since last few consecutive sessions over Brexit uncertainties. Ichimoku Clouds cast bearish outlook for the Sterling Pound pair.
The Aussie Dollar touches sub-$0.69 as more stats disappoint. Chatter on trade and a sparse economic calendar will be in focus today.
The Chinese yuan trade lower on Wednesday after a round of weaker-than-expected economic data out the world’s second-largest economy.
The British pound fell rather hard during the trading session on Wednesday after initially trying to rally. We have sliced through the 1.29 handle, and it now looks like we are going to go even lower, perhaps even the 1.28 level after that.