GBP GETS INTO TROUBE – May Defeated in Lords on Brexit, Signaling More Challenges Ahead
The U.K.’s upper house voted against a key part of Prime Minister Theresa May’s Brexit policy, inflicting a defeat on the government that could eventually push it toward keeping closer ties with the European Union. The defeat by a margin of more than 100 votes was on an amendment pressing May to seek a post-Brexit customs union with the EU. Staying in a customs union is a key demand of business as it would facilitate trade. It would also ease negotiations in Brussels, which haven’t made much progress on what trade ties will look like after the split. Read More @ https://www.bloombergquint.com/politics/2018/04/19/may-defeated-in-lords-on-brexit-signaling-more-challenges-ahead
Japanese Inflation Slips as Kuroda Begins New Term at BOJ
Japan’s key price indicator slipped in March after hitting 1 percent in February, yet the underlying trend is seen remaining intact as Bank of Japan Governor Haruhiko Kuroda begins his second term vowing to achieve 2 percent inflation.
- Consumer prices excluding fresh food rose 0.9 percent in March from a year earlier (estimate 0.9 percent).
- Stripping out fresh food and energy, prices climbed 0.5 percent (estimate 0.5 percent).
- Overall prices gained 1.1 percent (estimate 1.1 percent).
- Excluding fresh food, inflation for the fiscal year that ended in March 2018 was 0.7 percent. While that’s the highest since 2014, it’s below the BOJ’s forecast of 0.8 percent. Read More @ https://www.bloomberg.com//news/articles/2018-04-19/japanese-inflation-slips-as-kuroda-begins-new-term-at-boj
SNB’s Jordan Sees No Need for Policy Shift Despite Franc’s Slide – be ready for another intervention.
The Swiss National Bank is “not in a hurry” to adjust policy despite the franc touching a milestone low as the situation remains delicate, President Thomas Jordan said. “There’s no need to do anything regarding monetary policy at this moment,” he said in an interview with Bloomberg Television on Thursday in Washington. Jordan spoke just hours after the franc broke through the 1.20-per-euro mark for the first time since early 2015, when the central bank gave up the ceiling it had set at that level. Read More @ https://www.bloomberg.com//news/articles/2018-04-19/snb-s-jordan-sees-no-need-for-policy-shift-despite-franc-s-slide
WHAT IS THE USD INDEX SAYING?
USD once again breaks the Symmetrical Triangle and defying the fall. We believe is temporary and we maintain SELL for the USD.
TODAY’S NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 7.30am – Japan CPI – no change and looks like BOJ is not going to cut the stimulus anytime sooner – JPY weakens. We believe the JPY will get back its rally. We maintain BUY for JPY.
- 2.00pm – German PPI – we are expecting a good data – we maintain BUY on the EUR.
- 7.30pm – German Weidmann speaks – expect good volatility for EUR Pairs – we expect a hawkish statement.
- 8.30pm – CAD will go to action with massive data – we BUY CAD. Expect good volatility.
- 10.00pm – EUR Consumer Confidence – we are expecting a good data.
Be cautious over the weekend if you are holding your positions as the war in Syria is not over and also the market is fragile and can make a massive correction anytime soon.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.