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.

Le informazioni contenute nel presente documento sono redatte da Miguel A. Rodriguez e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.

Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.

Key Way Investments Ltd non influenza né ha alcun input nella formulazione delle informazioni qui contenute. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.

Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le performance passate non sono un indicatore affidabile dei risultati futuri.