15/ 11/ 2018

GBP emerges Stronger against Rivals on Cabinet Approvals

Britain Prime Minister Theresa May received a green flag on Majority from cabinet for the Brexit negotiations gained common currency to recover from the bearish ground. The Euro recovery hasn't been enough to take it out of bearish ground under shadowing the tensions between Italy and the EU over 2019 budget.

Sterling scaled back its earlier losses against the dollar on Wednesday after Theresa May backed up by the Cabinet Top Ministers on Brexit agreement. Strength in both EUR and Pound pushed the dollar lower. While on the Eurozone, ministers have remained defiant on the EC's demand to cut the budget deficit. The answer will probably not satisfy Brussels if the deadline passes without a resolution, the Euro could suffer. Both sides may agree to talk and push back the period in a classic Euro-fudge.

14/ 11/ 2018

Major Economic Data will take Center Stage while Geo-Political Tensions eased

The Euro recovery hasn't been enough to take it out of bearish ground undermining the tensions between Italy and the EU over 2019 budget. Sterling pound climbed higher yesterday, as news hit the wires indicating that the UK and the EU have agreed on a Brexit deal, including a solution to the infamous Irish border issue however is must pass the Cabinet, it will then have to pass the UK's Parliament. 

Looking ahead, while inflation figures out of the UK and U.S and 3rd quarter GDP numbers out of Germany will be in focus.  Across the Pond, outside of the numbers, we can expect some movement off the back of a scheduled FED Chair Powell speech, with members Quarles and Daly also due to speak through the day. On the political front, it could all come down to Brexit, Italy, and the Oval Office will influence demand for the safe havens, with the markets likely to be in search of more progress on U.S & China trade talks.

13/ 11/ 2018

The Pound and EUR Remains in Focus Amidst Geo-Political Risks

The dollar built on last week’s gains and rose towards a 16-month high yesterday as traders expect the U.S. Federal Reserve to keep tightening monetary policy. Common currency Euro slipped against the Dollar  due to the interest rate hike in December probability is spiked and confirmed by Federal Reserve and political tensions between Italy and the European Commission over budget deficit. Sterling pound lost ground against the greenback due to political tension over Brexit deal and negative headlines & rumors of four UK government ministers stepping down in the final phase of Brexit negotiations. Irish border issue is more likely to hold the Brexit deal which is expected to be delayed till January 2019.

Economic data is likely to have a relatively muted impact on the majors through the day, with heightened geo-political risk to drive the EUR and the GBP.

12/ 11/ 2018

Week Ahead | Economic & Geo-Political Tensions holds Dollar Boosted

The dollar built on last week’s gains and rose towards a 16-month high on Monday as traders expect the U.S. Federal Reserve to keep tightening monetary policy.

The greenback has also benefited from a safe haven bid as market participants moved away from riskier assets due to U.S.-Sino trade tensions, an economic slowdown in China, Brexit uncertainty, and the standoff between Rome and the European Union over Italy’s plan for a big-spending budget and wide fiscal deficit.

It’s a busy week ahead, with key stats to drive the majors along with geo-political risk, with Italy, Brexit and the U.S – China trade war in focus.