Advertisement
Advertisement
trade360
BREAKING NEWS : Start Trading Today Join Now!
Advertisement markets

GBPUSD slides below the 1.35; finds support on Chinese whispers

Written David Cheetham | 2018-01-10 06:22:47 GMT

Positive data fails to support the Pound

The latest economic releases from the UK have shown better than expected readings with both manufacturing and industrial production rising higher. These data points refer to the month of November and given that this morning the October numbers were revised higher, it is a fairly clear positive. However, the Pound has come under pressure since the release with the GBP/USD dropping to its lowest level in 2 weeks and moving below the 1.35 level. It’s not just the most widely traded GBP pair that has shown weakness in Sterling with all the other G10 currencies rising against the Pound with the Japanese Yen the strongest.

Oil price continues to rise

The second half of 2017 was an enjoyable one for oil bulls with the price of Brent crude gaining by more than 50%. The new Year has begun in much the same fashion with further gains seen and the benchmark hit its highest level since May 2015 overnight following a large drop in the private ADP inventory numbers from the US. This afternoon sees the more widely viewed DOE figures released and whilst an extreme level of longs in the market present the risk of a sharp reversal, for now the trend is clearly higher and we could well get a $70 handle in the not too distant future - especially if today’s data shows a large drop in stockpiles.

China to halt UST purchases?

Tensions between the two largest economies in the world could be set to rise once more after this morning an unconfirmed report stated that China intended to stop its purchases of US treasuries. The source stated that US government bonds are becoming less attractive compared to other and assets and the trade tensions with the US may provide a reason to slow or stop buying American debt. The market has reacted strongly to this news with US treasuries predictably falling seeing their yield rising to its highest level since last March. The USD has also taken a hit alongside US stock futures whilst Gold has spiked higher by around 1%.

Author

David Cheetham
fbs

Featured Forex Brokers

Broker Profile Open Account
XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    tickmill
  • Minimum Deposit: 25 USD
  • Leverage of up to 1:500
  • Broker Type : ECN/STP & STP
  • Regulation : FSA SD008
  • tickmill
    markets
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • markets

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
    binance
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
    changelly
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
    bitmex
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
    XM
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Leverage applies to all EU regulated entities of the group. Leverage depends on the financial instrument traded.
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
    FBS
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
    eToro
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us
    Email: reviewbrokers.net@gmail.com
    Skype:fxvnpro