Dollar strengthens as sterling and euro fall prey to political pressures
The dollar gained ground Monday as investors kept an eye on a number of themes, including Italy’s budget and Britain’s ongoing Brexit process. The ICE U.S. Dollar Index DXY, +0.37% was up 0.3% at 96.001, adding to a 0.5% weekly gain last week, according to FactSet data. In the U.K., traders were watching Prime Minister Theresa May updating members of parliament on Brexit after earlier saying 95% of the deal was done. The U.K. leader said the real sticking point remained Northern Ireland, and stressed with regards to a possible extension of the transition period that this wasn’t a desirable option and might not be necessary. Read More @ https://www.marketwatch.com/story/dollar-strengthens-as-sterling-and-euro-fall-prey-to-political-pressure-2018-10-22?mod=newsviewer_click
WHAT IS USD SAYING?
USD takes advantage of all the political and country risk of UK, ITALY and the Euro-Zone!! From Wednesday till Friday the volatility will increase in any directions as the Central Bank gives their views of their country risk; US GDP this Friday is also critical for the USD and other major currencies. Be cautious as the market awaits for fresh news.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES TODAY.
- 11.00am – RBA will number of members will speak; except volatility in favor of AUD for a pullback only.
- 1.00pm – Japan will release their BOJ Core CPI data – expected to be good.
- 2.00pm – Germany will release their PPI – It’s a leading indicator of consumer inflation – when manufacturers charge more for goods the higher costs are usually passed on to the consumer. Expected t o be good.
- 6.00pm – UK MPC member Haldane speaks – expect GBP movement.
- 10.00pm – Euro will release their consumer confidence – expect volatility.
- 11.20pm – Mark Carney will speak – GBP volatility expected. We buy GBP.
We believe the market meltdown is not over yet – as Italy, Greece, Brexit and Emerging market currencies are all going to be the trouble makers the next few weeks or months. Be cautious and always maintain good money management.
High Risk Investment Warning:
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