The pound continues to fight at $1.24
The pound continues to fight at $1.24
Written by: PaxForex analytics dept - Wednesday, 17 July 2019 0 comments
On Wednesday, the British pound continued to decline, trading at a new 27-month low against the US dollar, below the 1.24 USD mark. Markets continue to react negatively to the increased likelihood of a British exit from the European Union without any treaty.
According to forecasts, the main skeptic and supporter of tough Brexit, Boris Johnson, will be elected next week as the leader of the Conservative Party and, therefore, will become the next prime minister.
Investors believe that the emerging political situation is increasingly forcing them to hedge against the risks of the pound, and options markets are showing a tendency to further weaken.
At the moment, the pair GBPUSD is trading down with a mark of 1, 2404.
In the meantime, the US dollar did not change its direction on Wednesday after optimistic data on the US economy, which even more restrained expectations of aggressive easing of the Federal Reserve policy at the end of this month.
The dollar rose after the June US retail sales data were stronger than expectations, which weakened expectations that the Fed could cut interest rates by 50 basis points instead of 25, as previously assumed.
Traders believe that a significant role in strengthening the dollar belongs not only to the strong fundamental data of the American economy but also to the weakness of the single European currency and the British pound.
The dollar index versus a basket of six major currencies remained almost unchanged at 97.365, after rising by 0.5% a day before.
The Australian dollar is almost unchanged and is trading at the level of 0.7007 dollars, having lost 0.4% on the eve after the comments of the US President Donald Trump.
According to Trump, the United States still has a long way to make an agreement with China, and they still can impose duties on additional Chinese goods worth $ 325 billion if this is required.
The Australian dollar is very sensitive to the economic situation of China, the largest trading partner of this country.
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Forex trading recommendations:
EURUSD: Buy. Entry point – 1, 1209. Take profit – 1, 1225. Stop Loss – 1, 1182.
GBPUSD: Buy. Entry point– 1, 2398. Take Profit – 1, 2423. Stop Loss – 1, 2355.
AUDUSD: Buy. Entry point – 0, 7008. Take Profit – 0, 7023. Stop Loss – 0, 6983.
According to forecasts, the main skeptic and supporter of tough Brexit, Boris Johnson, will be elected next week as the leader of the Conservative Party and, therefore, will become the next prime minister.
Investors believe that the emerging political situation is increasingly forcing them to hedge against the risks of the pound, and options markets are showing a tendency to further weaken.
At the moment, the pair GBPUSD is trading down with a mark of 1, 2404.
In the meantime, the US dollar did not change its direction on Wednesday after optimistic data on the US economy, which even more restrained expectations of aggressive easing of the Federal Reserve policy at the end of this month.
The dollar rose after the June US retail sales data were stronger than expectations, which weakened expectations that the Fed could cut interest rates by 50 basis points instead of 25, as previously assumed.
Traders believe that a significant role in strengthening the dollar belongs not only to the strong fundamental data of the American economy but also to the weakness of the single European currency and the British pound.
The dollar index versus a basket of six major currencies remained almost unchanged at 97.365, after rising by 0.5% a day before.
The Australian dollar is almost unchanged and is trading at the level of 0.7007 dollars, having lost 0.4% on the eve after the comments of the US President Donald Trump.
According to Trump, the United States still has a long way to make an agreement with China, and they still can impose duties on additional Chinese goods worth $ 325 billion if this is required.
The Australian dollar is very sensitive to the economic situation of China, the largest trading partner of this country.
Open Forex trading account >
Forex trading recommendations:
EURUSD: Buy. Entry point – 1, 1209. Take profit – 1, 1225. Stop Loss – 1, 1182.
GBPUSD: Buy. Entry point– 1, 2398. Take Profit – 1, 2423. Stop Loss – 1, 2355.
AUDUSD: Buy. Entry point – 0, 7008. Take Profit – 0, 7023. Stop Loss – 0, 6983.