GBP is getting affected by events

Daily Analysis - 10/01/2020

UK Economy is driving pound more than Brexit

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The popular GBP will probably get affected more by UK economic indicators rather than Brexit in 2020, according to strategists. It will expect to remain firm. Boris Johnson the UK Prime Minister and President Ursula von der Leyen of the European Commission attended a meeting in London last Wednesday to start the negotiations a future zero-tariff trade agreement, with the UK that is set to begin at the end of this January. Johnson has promoted a bill to block trade discussions stretching beyond December 2020, notwithstanding seeking a related agreement to that between the EU and Canada, which took seven years to negotiate. UK legislators yesterday passed a bill that allows the UK to depart from the European Union with an exit settlement, following three years of deadlock covering the terms of the separation.

US stocks scored record highs yesterday


On Friday US stock index futures moved higher while world markets recovered on the back of the diminishing tensions in the Middle East. Dow futures increased more than 85 points, registering a positive open of more than 95 points. S&P and Nasdaq moved also higher. US equities scored record tops yesterday on the back of the subsiding pressures. Tech shares exceeded with Apple surging more than 2%. Chinese data revealed yesterday that iPhone sales surged more than 16% in December in the country. The House passed a decision to restrict President Donald Trump’s war rules versus Tehran yesterday, with many legislators concerned regarding the possibility of another increase following the US killing of Iran’s top general Qasem Soleimani last week.

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Gold falls due to rising stocks


On Friday Gold dropped and remained on course for its weakest week in five while reducing stresses in the Middle East urged investors to move back to riskier bets. Spot gold dropped 0.3% to $1,548.16 per ounce. Gold dropped as much as 1% to its weakest since 3 January at $1,539.76 yesterday. The Gold fell 0.2% so far this week, it is the most damaging since the week ended 6 December. US gold futures slid 0.3% to $1,549.39.

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Oil falls due to uncertainty on Middle East


On Friday Oil fell, increasing the days of declines while the threat of war in the Middle East declined and investors turned their focus to economic growth forecasts and the increase in US crude oil and product inventories.

Brent crude dropped 20 cents, at $65.16, and is going for its first drop in six weeks, under 5%. WTI fell 20 cents, at $59.35 and also on course for a first weekly decline in six weeks, nearly 6% from last Friday’s conclusion.

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