FTSE Not Out of the Woods Yet

The bigger the drop, the bigger the rebound. That is what has happened with the FTSE 100 index in the aftermath of the UK's vote to leave the EU. In fact, the rebound has been so profound that the index has nearly made good all the losses suffered since the Brexit vote. Clearly, some investors who were lucky enough to come through the Brexit-stimulated drop relatively unscathed may now use this opportunity to either cut or reduce their stocks holdings or at least hedge their exposure by shorting the FTSE. This could especially be the case since we are approaching month-end; it would not look good on money managers who hold stocks in sectors that dropped massively post the Brexit vote. Added to this, bearish speculators who missed the original plunge may be tempted to step in and ride the next potential drop. So the FTSE could easily turn back lower.

Daily Technical Analysis

EURUSD

The EURUSD had a bearish momentum yesterday bottomed at 1.1239. The shooting star formation I showed you yesterday gave us a valid bearish signal. The bias is bearish in nearest term testing 1.1150 and the lower line of the bullish channel which remains a good place to buy with a tight stop loss. Immediate resistance is seen around 1.1285. A clear break back above that area could lead price to neutral zone in nearest term testing 1.1350 region. On the downside, a clear break and daily close below the bullish channel would activate my bearish mode with nearest target seen around 1.1000.

Crude Back at $50 as Traders Anticipate Sharp Draw in US Stocks

Oil prices are little-changed at the time of this writing after they snapped back into the positive territory and above $50 a barrel late in the day yesterday. Both oil contracts were lower in the first half of yesterday's session. This was possibly due to a rebounding US dollar and profit-taking ahead of US oil inventories data, especially since prices had risen rather sharply in the prior couple of days. Crude oil, which has been unable to decouple itself from risk assets, was also tracking the movements in equities and GBP ahead of the all-important Brexit vote on Thursday. The GBP/USD and stocks gave up their earlier advance yesterday after new polls showed support for Brexit had increased a tad. So oil was coming under pressure from this source, too.

Sterling reverses losses against the US dollar

A relatively quiet day for sterling saw the currency make gains against a weakened US dollar, and trade largely sideways versus the euro. German factory orders were shown to have fallen throughout September but, with UK housing inflation also contracting throughout the month, sterling was unable to capitalise on this. US trade balance data provided the main point of interest during the afternoon, and as this figure reported a larger deficit than forecast, sterling was able to capitalise and reverse the small losses suffered on Monday.

Manufacturing production data will be released from the UK this morning, and should provide further insight into the health of this sector. With manufacturing growth seemingly on target throughout September, investors will be hoping for a positive reading following the previous month’s contraction.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source:smartcurrencyexchange.com

Amlin purchase bid boosts sterling

With very little economic news of note discharged on Tues, sterling announce gains against each the monetary unit and North American nation dollar as news poor of a £3.5 billion bid by a Japanese company, Mitsui Sumitomo Insurance, to buy Great Britain nondepository financial institution Amlin.

With investors recently pushing back dates on once the Bank of European country (BoE) area unit doubtless to boost interest rates within the Great Britain, sterling has found itself fraught, falling to its lowest levels since Gregorian calendar month towards the tip of last week. However, with a major purchase of sterling doubtless to require place within the wake of this deal, sterling found support across the board. Confidence appearance set to come back to British people economy generally

Slight weakening against sterling the big news for the euro

Monday was an uneventful day for the euro, with the single currency weakening slightly against sterling and staying almost unchanged against the US dollar. The only major piece of data was German industrial production data; released early in the morning, this came out worse than expected at 0.7% (compared to the forecast 1%). This pushed the bar forward for the euro to slowly weaken against sterling as the day went on – although other than this, it was an extremely quiet day.

Will today’s data release enable sterling to regain its footing in the market?

Widespread turmoil in the financial markets this week has seen mixed fortunes for sterling. With the so called “Great Fall of China” on Monday preceding a day of losses throughout European and US stocks, sterling fell to a two-month low against the euro on the back of short-term profit taking by investors. On the flip side, the British currency also rose to a one-month high against the US dollar, although it was unable to maintain these levels as the week progressed

With no economic data released from the UK throughout the week, sterling found itself under pressure against a resurgent US dollar as equities staged a recovery worldwide. Following Monday’s sharp fall against the euro, the British currency was able to pushed back marginally throughout the week, and the single currency was unable to hold onto its more advantageous position.

Today sees the first major data release from the UK of the week. Following a positive economic growth estimate earlier in the year, the second estimate of gross domestic product (GDP) is forecast to remain stable at 0.7% growth.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source: Smartcurrencyexchange

Sterling’s brief respite against the markets ends

Another tough day for sterling on Wednesday saw it fall to a two-and-a-half week low against a strong US dollar, whilst slipping close to Monday’s lows against the euro. With markets drawing breath on Tuesday, sterling was able to make marginal gains against the euro and US dollar but these were then erased throughout Wednesday thanks to a resumption in European and British stock declines saw sterling struggle across the board. Comments by Federal Reserve member Dudley which suggested a September interest rate-hike in the US was unlikely, but this was largely ignored by the markets as sterling continued to weaken.

Today sees the release of preliminary economic growth figures from the US for the previous quarter. This could have a significant effect on the markets, with growth expected to pick up to 0.7% compared to the previous year.

If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Source:smartcurrencyexchange

POUND REMAİNS WEEK AS CONFİDENCE REACHES RECORD LOW

The Great Britain strengthened a little yesterday as the retail sales rose last month, but the currency hasn't been able to retain its upward momentum and currently moves without a clear direction.

The volume of the UK retail sales increased 0.6 percent in October from September, following the 0.5 percent increase in the preceding month. That’s much better than market expectations of a 0.2 percent drop. The value of the sales rose 0.7 percent. The report noted that small stores performed better than larger ones.

POUND NOT ABLE TO PRESERVE ONE PARTICULAR-WAY MOVEMENT TO UPSIDE

The Great Britain closed lower today despite another positive economic report that added to evidences of recovery in the United Kingdom. Forex traders were concerned that the currency was going too long in one direction.

Public sector net borrowing excluding temporary effects of financial interventions was at £13.2 billion in August. It was £1.3 billion lower than the budget deficit of £14.4 billion a year ago. Analysts have predicted slightly higher reading.

POUND DOWN ON WEAKER THAN EU OUTLOOK

The pound started the week down versus the euro and the U.S. dollar as sentiment towards other wealthy nations in the world remain more positive than the U.K.’s economic perspectives, forcing investors to abandon pound priced assets to inject capital in more attractive currencies backed by fast recovering nations.