Contest Trader

Don't miss the chance to cash-in prizes totaling

$10.000
Register here for the Ultimate demo trading competition

Markets expect an answer from Boris Johnson, the pound struggles – Market Overview

Markets expect an answer from Boris Johnson, the pound struggles – Market Overview

The dollar continued to gain ground amid a surge of risk aversion in the market.

The dollar continued to gain ground amid a surge of risk aversion in the market.

Although we saw some of the fears fade late in the session, the US is causing stocks to rebound from lows as did yields from Treasury bonds.

In any case, the US dollar remained strong throughout, improving from a technical perspective as we approach the end of the week.

As we can see in the DollarIndex chart, the #dollar is approaching the resistance level located at 93.97, an area with an overcoming that opens the way to new gains up to 94.74, the previous maximum reached at the end of September, and where the 100-day SMA passes.

The Japanese yen remains firmer as a result of increased risk aversion with USD /JPY breaking below the 100 hourly SMA at 105.37 and heading towards the main support around the 105.00 area.

The concern is the general trend of the market due to the different fronts of open risks that do not find an immediate solution and that raise the level of uncertainty.

Failed negotiations on the US fiscal stimulus plan and Brexit are among the key issues, and the latter will be of great interest to the market as the day progresses, with Boris Johnson on a deadline to offer a response to the EU on whether the UK will continue negotiations beyond this week.

The currency pair that best reflects this high degree of uncertainty is GBP/JPY, which, as we can see in the graph, has broken down the 100 and 200-day SMAs in recent days and is trading below the 135.80 support zone, while heading towards the zone of lows at the end of September between 134.80 and 135.00.

The economic data published on the day such as the euro area CPI lose interest as market-movers, and the market's attention will be focused on the potential advances on the American fiscal stimulus package, something that seems to have stagnated, along with the British Prime Minister's response to the EU. These facts will be those that regulate the general risk sentiment of the market.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.