Traders have witnessed the tremendous selling pressure GBPNZD has suffered from, following all the BREXIT headlines and negotiations over the last few weeks.
Good day traders! Following Christmas and New Year holidays we have seen a new bout of dollar weakness across the board which may not be over yet based on recent price developments.
2018 is nearly upon us and the past year was certainly full of interesting events. Potentially dangerous political events in the EU – such as the French & German elections and the Catalan independence referendum – were safely navigated.
Cable is making a nice drop from the 1.3650 September high which can prove to be the start of a new bearish trend if we consider that the move higher from January of this year is most probably an ending diagonal.
Ahead of Thursday’s ECB meeting and with a crisis brewing in Spanish Catalonia the EUR is trading heavy or at significant resistance in some crosses which are worth watching for bearish reversals.
The Yen has been consolidating in price since 2016, following two major moves since the global financial crisis. The 4-year bear move from 2008 till 2012 saw the USDJPY drop from 123 to roughly 75, nearly 40% lower.
The US Dollar has experienced a prolonged and material decline in 2017. The DXY index has dropped from 102.80 (2nd January) to 91.33 (8th September), which roughly represents an 11% loss.
The EUR/GBP is closing in on the weekly lows, despite the rally in the EUR/USD above 1.20000 this week. That’s a very impressive feat for the GBP single currency, given that the EUR/USD has seen levels this week it hasn’t seen since 2014.
The Bank of England’s Monetary Policy Committee met last week and there were some interesting developments. We will try to sieve through the plethora of information and pick what we think were the salient points.