October 15, 2018 - Pound drops and oil prices rise as risk appetite eased at the beginning of the week
The British pound opened the week lower against all major currencies after the visit of the Minister of the affairs of the withdrawal from the European Union Dominique Rap to Brussels, which was described as a failure, after both the European and British sides that the agreement is not yet in spite of the recent convergence and led to the rise of sterling this week Past to the front trading near the level of 1.3250.
While the negotiations are still under pressure on the British side from the inside more than it looks from outside, after David Davies, outgoing minister and former Dominique Rab in the management of the withdrawal from the European Union protesting the government's plans for the commercial relationship with the European Union, while several In the UK, expressed their willingness to accept the lack of agreement.
While the first Asian session of this week saw the futures of the main US stock indexes retreat, after these contracts were able to bounce back before the end of trading last week, which led to further pressure on the major Asian stock indexes.
The decline in risk appetite also helped gold to continue rising as it currently trades near $ 1230 an ounce, while yields on the US Treasuries declined as demand increased to drop the 10-year Treasury yield to 2.15%. JPY is currently retreating near 111.75 as the Yen is a low-cost financing currency sold in the event of a risk bias and is bought if avoided.
While oil prices witnessed a price jump higher with the beginning of trading in the new week after the dispute between Saudi Arabia and the United States over the disappearance of Saudi exhibitions Jamal Khashoggi to start the West Texas crude for trading this week at $ 72.50 a barrel, after closing last week at $ 71.33 per barrel, Khashoggi crisis Has already put pressure on the Saudi and Gulf stock markets with the start of trading this week, after Saudi diplomacy put in a critical situation may expose them to attempts to blackmail.
IMF President Christine Lagarde said during the weekend that markets should prepare for more volatility after the IMF released its semi-annual report, which showed a drop in the forecast for global economic growth this year to 3.7% after it was Expects an increase of 3.9% in April, attributed mainly to US trade wars and its impact on the global economy and international trade, which will decline due to higher tariffs.
The Chinese ambassador to the United States said China does not want the war, but will respond to any sanctions or customs duties on its products.
US Treasury Secretary Stephen Manuchen said last week that the yuan's exchange rate should be part of any trade agreement between the two countries, and China should not intervene at this price.
The negotiations have been suspended more than once as a result of Trump's threat during the talks to impose more tariffs on Chinese imports, which China has refused to be under threat during the talks.
While the event is expected to be the most prominent this week, God willing, the issuance of the facts of the recent meeting of the members of the Market Committee specific monetary policy of the federal, having overlooked that the Fed's policy is still motivational in its economic assessment, after raising the interest rate by 0.25% to 2.25%.
The write-off has led to market turmoil, but it appears to have been in the right time as a result of the expectations of the members that the interest rate has shown that they will continue to raise another 0.25% before the end of this year and three times the same amount next year, Is no different from the average expectations after the meeting of the thirteenth of last June.
Which led to the return of Trump to criticize the Federal Reserve and described the pace of raising interest rates very quickly and is blocking the economic stimulus he did through a tax reform to start work this year, Trump did not stop at that, but also blamed the federal on what Recently, the US stock market has witnessed a collapse in the interest rate, which is seen by the Federal Reserve as gradual and appropriate.
Daily Chart of the British Pound against the US Dollar:
The GBPUSD is currently trading near 1.3115, after closing the price gap that opened the week at 1.3082 after closing last week at 1.3147, and is currently again above its moving average to close the 100 day pass through 1.3095.
After being able to return above above its moving average to close the 50 days of the pass now at 1.2981 forming a bottom on the fourth of October at 1.2921, while still naturally represents a pressure on the longer term survival below the moving average to close the 200 days currently passing 1.3541 .While the GBPUSD pair is still in front of the USD for the fifth day in a row above the Parabolic Sar (0.02), whose reading today is at 1.2980 after retreating from last Friday's high of 1.3256 to reach its previous low of 1.3298 on September 20th.
The daily chart also shows that the RSI 14 remains within the tie zone with a current reading of 52.829. The main line of the STOCH (5.3.3) is the most affected by the fluctuation within the tie zone with the current reading indicating 62.270, The index above it is within the same area at 78.479 after a break down within the overbought area above 80.
Support and resistance levels:
The first support level is 1.3028, the second support level is 1.2921, the third support level is 1.2784
First resistance level of 1.3256, second resistance level of 1.3298, third resistance level of 1.3362
Sponsored by LegacyFX
While the negotiations are still under pressure on the British side from the inside more than it looks from outside, after David Davies, outgoing minister and former Dominique Rab in the management of the withdrawal from the European Union protesting the government's plans for the commercial relationship with the European Union, while several In the UK, expressed their willingness to accept the lack of agreement.
While the first Asian session of this week saw the futures of the main US stock indexes retreat, after these contracts were able to bounce back before the end of trading last week, which led to further pressure on the major Asian stock indexes.
The decline in risk appetite also helped gold to continue rising as it currently trades near $ 1230 an ounce, while yields on the US Treasuries declined as demand increased to drop the 10-year Treasury yield to 2.15%. JPY is currently retreating near 111.75 as the Yen is a low-cost financing currency sold in the event of a risk bias and is bought if avoided.
While oil prices witnessed a price jump higher with the beginning of trading in the new week after the dispute between Saudi Arabia and the United States over the disappearance of Saudi exhibitions Jamal Khashoggi to start the West Texas crude for trading this week at $ 72.50 a barrel, after closing last week at $ 71.33 per barrel, Khashoggi crisis Has already put pressure on the Saudi and Gulf stock markets with the start of trading this week, after Saudi diplomacy put in a critical situation may expose them to attempts to blackmail.
IMF President Christine Lagarde said during the weekend that markets should prepare for more volatility after the IMF released its semi-annual report, which showed a drop in the forecast for global economic growth this year to 3.7% after it was Expects an increase of 3.9% in April, attributed mainly to US trade wars and its impact on the global economy and international trade, which will decline due to higher tariffs.
The Chinese ambassador to the United States said China does not want the war, but will respond to any sanctions or customs duties on its products.
US Treasury Secretary Stephen Manuchen said last week that the yuan's exchange rate should be part of any trade agreement between the two countries, and China should not intervene at this price.
The negotiations have been suspended more than once as a result of Trump's threat during the talks to impose more tariffs on Chinese imports, which China has refused to be under threat during the talks.
While the event is expected to be the most prominent this week, God willing, the issuance of the facts of the recent meeting of the members of the Market Committee specific monetary policy of the federal, having overlooked that the Fed's policy is still motivational in its economic assessment, after raising the interest rate by 0.25% to 2.25%.
The write-off has led to market turmoil, but it appears to have been in the right time as a result of the expectations of the members that the interest rate has shown that they will continue to raise another 0.25% before the end of this year and three times the same amount next year, Is no different from the average expectations after the meeting of the thirteenth of last June.
Which led to the return of Trump to criticize the Federal Reserve and described the pace of raising interest rates very quickly and is blocking the economic stimulus he did through a tax reform to start work this year, Trump did not stop at that, but also blamed the federal on what Recently, the US stock market has witnessed a collapse in the interest rate, which is seen by the Federal Reserve as gradual and appropriate.
Daily Chart of the British Pound against the US Dollar:
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The GBPUSD is currently trading near 1.3115, after closing the price gap that opened the week at 1.3082 after closing last week at 1.3147, and is currently again above its moving average to close the 100 day pass through 1.3095.
After being able to return above above its moving average to close the 50 days of the pass now at 1.2981 forming a bottom on the fourth of October at 1.2921, while still naturally represents a pressure on the longer term survival below the moving average to close the 200 days currently passing 1.3541 .While the GBPUSD pair is still in front of the USD for the fifth day in a row above the Parabolic Sar (0.02), whose reading today is at 1.2980 after retreating from last Friday's high of 1.3256 to reach its previous low of 1.3298 on September 20th.
The daily chart also shows that the RSI 14 remains within the tie zone with a current reading of 52.829. The main line of the STOCH (5.3.3) is the most affected by the fluctuation within the tie zone with the current reading indicating 62.270, The index above it is within the same area at 78.479 after a break down within the overbought area above 80.
Support and resistance levels:
The first support level is 1.3028, the second support level is 1.2921, the third support level is 1.2784
First resistance level of 1.3256, second resistance level of 1.3298, third resistance level of 1.3362
Sponsored by LegacyFX
