Article by ForexTime
The battered Pound was attacked from all angles by investors on Tuesday after President Donald Trump criticized Theresa May’s Brexit deal.
According to Trump, the current agreement “sounds like a great deal for the EU” but indicated it could obstruct future plans for a UK-US trade deal. These negative remarks are likely to complicate Theresa May’s already incredibly difficult mission of selling her Brexit deal to the British Parliament. With uncertainty over Brexit still a recurrent market theme and political drama at home weighing on sentiment, the near-term outlook for the Pound points to further downside.
Looking at the technical picture, the vulnerable Pound stood little chance against the Dollar today with prices tumbling towards 1.2740. With the Dollar back on the throne, the GBPUSD has the potential to trade towards 1.2760 in the near term.
Dollar finds an unexpected friend in Trump
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Donald Trump’s renewed tariff threats against China have magnetized investors to the US Dollar. The currency clearly remains as the go-to destination in times of market uncertainty, and this has been displayed on repeated occasions. With expectations over a rate hike in December stimulating buying sentiment towards the Dollar, the outlook remains bullish in the short to medium term. Regarding the technical picture, a breakout above 97.00 could open a path higher towards 97.25 and 97.43.
Is the G20 Summit really a big deal?
President Trump and his Chinese counterpart President Xi will be meeting at the G20 summit in Argentina later this week to discuss trade.
With Trump’s escalating trade dispute with China a major theme this year, investors should prepare for potential fireworks. Markets will be keeping a very close eye to see whether both sides are able to find some middle ground. While a breakthrough deal seems highly unlikely following Trump’s recent threats, any display of friendship and interest for further discussions will be welcomed by the financial markets. However, if talks descend into arguments with trade relations between the two nations deteriorating further, risk aversion may reign as fears mount over a full-blown trade war between the world’s two largest economies becoming reality.
Is this the end of the road for Bitcoin?
It is quite thought-provoking how this time last year Bitcoin was proudly marching towards the $10,000 level.
Fast forward 12 months, the cryptocurrency is gasping for air with prices sinking deeper and deeper into the abyss. A combination of factors have contributed to Bitcoin’s demise, ranging from regulatory scrutiny, infighting within the crypto community and a noticeable drop in investor appetite. With Bitcoin finding comfort below the $4,000 level and showing little sign of recovery, the next key level of interest may be found at $3,000.
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Article by ForexTime
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