GBP gloomy on Brexit anxiety while US Dollar flying high on Hawkish Federal Statement
The bears emboldened and continued to give pressure to the bulls upon Brexit negotiations and it created anxiety to the markets where Cable continues being sold over the weekend. There are plenty of news waiting this week and it might give a little air to breathe to the Cable. It will be an important week for the Sterling with Average Earning Index data will be out on Tuesday while Consumer Price Index (CPI) will be released on Wednesday could give an extra catalyst to the Cable but it will be no meaningful to the current sentiment on Sterling due to Brexit Negotiation that is still on going without any concrete positive outcomes. The cable will be toasted badly if the data released lower than the previous and it will be another nightmare to the cable buyers. In the meantime, the Greenback rose against most major pairs on Friday and slashed the wounds even deeper to the Cable. The Federal was giving a hint at a pause in its tightening monetary policy and the uncertainty about the US midterms has passed and the market remains confident in US Dollar despite political parties splitting house and senate. Starting with a release of CPI data on Wednesday and Retail Sales on Thursday, this week is going to be an excitement and important week for US Dollar. The speeches from the Chair of the Federal might give impact to the movement of the Greenback.
From the technical point of view, the Cable has re-tested the broken trend-line in Daily chart and 1.27 handle will be the last barrier for this pair to decide the next movement. The 1.27 handle remains strong for the past 13 weeks but in Weekly chart, the shooting star was formed last week indicating a strong bearish movement on the upcoming weeks. If the 1.27 breaks, there is a chance in going down to the next support level, 1.25 and 1.22. Based on the current sentiment, it is likely to see this pair is going to dive to the deepest well unless there would be positive news on Brexit negotiation in the near future.
The bears emboldened and continued to give pressure to the bulls upon Brexit negotiations and it created anxiety to the markets where Cable continues being sold over the weekend. There are plenty of news waiting this week and it might give a little air to breathe to the Cable. It will be an important week for the Sterling with Average Earning Index data will be out on Tuesday while Consumer Price Index (CPI) will be released on Wednesday could give an extra catalyst to the Cable but it will be no meaningful to the current sentiment on Sterling due to Brexit Negotiation that is still on going without any concrete positive outcomes. The cable will be toasted badly if the data released lower than the previous and it will be another nightmare to the cable buyers. In the meantime, the Greenback rose against most major pairs on Friday and slashed the wounds even deeper to the Cable. The Federal was giving a hint at a pause in its tightening monetary policy and the uncertainty about the US midterms has passed and the market remains confident in US Dollar despite political parties splitting house and senate. Starting with a release of CPI data on Wednesday and Retail Sales on Thursday, this week is going to be an excitement and important week for US Dollar. The speeches from the Chair of the Federal might give impact to the movement of the Greenback.
From the technical point of view, the Cable has re-tested the broken trend-line in Daily chart and 1.27 handle will be the last barrier for this pair to decide the next movement. The 1.27 handle remains strong for the past 13 weeks but in Weekly chart, the shooting star was formed last week indicating a strong bearish movement on the upcoming weeks. If the 1.27 breaks, there is a chance in going down to the next support level, 1.25 and 1.22. Based on the current sentiment, it is likely to see this pair is going to dive to the deepest well unless there would be positive news on Brexit negotiation in the near future.