Looks like coronavirus concerns weighed on high-yielding currencies like the comdolls again.
Meanwhile, the pound dipped further on an a lack of Brexit deal.
Before I show you guys how GBP/USD is showing a legit trend play, you might want to read up on the major headlines during the Asian session:
- U.S. crude stockpiles rise slightly, distillate inventories plunge -EIA
- Michigan GOP election officials want to rescind votes certifying results in late night reversal
- Australia’s October jobs surpass forecast, unemployment ticks up
- EU leaders set to demand no-deal plans be published: Times
- Japan to monitor virus cases, hospitals before any emergency declaration decision
- China to cut tariffs, boost imports of high-quality goods and services: Xi
- Asia stocks ease from highs, bonds count on Fed support
Upcoming Potential Catalysts on the Economic Calendar:
- Switzerland’s trade balance at 7:00 am GMT
- Eurozone’s current account at 9:00 am GMT
- U.K. CBI industrial order expectations at 11:00 am GMT
- Canada’s non-farm employment change at 1:30 pm GMT
- U.S. Philly Fed manufacturing index at 1:30 pm GMT
What to Watch: GBP/USD
The other day we talked about Cable trading along an ascending trend line on the 1-hour time frame.
Well, the pound was knocked lower today when word got around that European leaders are calling on the European Commission to publish no-Brexit plans to help businesses prepare for the scenario.It also didn’t help that traders were low key freaking out about the rising coronavirus cases around the world and that more authorities are considering lockdown restrictions.
GBP/USD is now at around 1.3250, which is just under the trend line that we’re looking at but is still above the 100 and 200 SMAs on the chart.
There aren’t a lot of data releases in the next coupla hours so it’s likely that traders will price in pandemic and Brexit-related headlines again.
More talks about the EU preparing for a no-Brexit situation could drag the pound to a trend line breakout and even a retest of the 1.3150 inflection point.
If we see Brexit deal developments, however, or if risk-takers step in to prop up high-yielding bets, then we could see GBP/USD pop back up to its November highs.