Title - Brexit Stalemate, Trump Impeachment and Forex Outlook

Created 09/25/2019 at 09:16AM


NZD and CHF are the top G10 FX gainers today, up 0.02% and -0.01% vs the dollar while GBP and SEK are the top losers, down -0.48% and -0.39% vs the dollar.

 

The U.S. dollar recovered after initially falling on news of a formal impeachment inquiry against Donald Trump. However, sentiments were still weak as the latest China-U.S. trade row continued, hurting the emerging currencies.

 

Sterling fell once again as the market prepared for more uncertainty on British politics over the coming weeks. UK's Supreme Court had ruled yesterday that PM Johnson had suspended parliament unlawfully. In our view, Sterling is likely to remain vulnerable as the Brexit stalemate is likely to continue.

 

In the Asian equities space, the Nikkei 225 closed -0.36% lower at 22,020.15, Hang Seng closed -1.28% at 25945.35 and Kospi ended -1.32% at 2073.39. The European equities were trading weaker with the FTSE down -0.86% at 7228.58, DAX down -1.05% at 12177.5, and CAC down -1.42% at 5548.53. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.6404% and the Bund 10-year yield trading at -0.618%. In the energy space, the Brent (front month) is trading down (-1.57%) for the day at $62.11.

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

Trade Weighted Basket Hourly (two-week)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1025 for 1.0903
Short-term view: EUR/USD resistance at 1.1025, MACD and RSI are weakening. Hence, we see a move to 1.0903, likely 1.0840. Above 1.1025 to open 1.1085

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2505 for 1.2325
Short-term view: GBP/USD resistance at 1.2505, MACD and RSI are weakening. We see risk of a dip to 1.2381, likely 1.2325. Above 1.2505 to open 1.2584.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 107.48 for 106.40
Short-term view: USD/JPY has resistance around 107.48, MACD and RSI are weakening Hence, we see a move lower to 107.05, likely 106.40. Above 107.48 opens 108.01

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6800 for 0.6725
Short-term view: AUD/USD MACD and RSI are weakening, resistance at 0.6800 for a move lower towards 0.6725, likely 0.6650. Above 0.6800 we look for 0.6830.