Brexit Vote

Asian Indices Higher, GBPUSD Retreats Ahead of Brexit Vote

Asian Indices ended higher today as investors turn cautious ahead of the UK Parliaments vote on the Brexit deal. Meanwhile, the US and China’s partial trade deal spill optimism in equities markets. Chinese Government wants to proceed with further discussions before signing the phase one trade deal.

Last week, Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. Investors increased their bets the Fed will cut interest rates at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions. The Hang Seng index is 0.23% higher at 26,786. The Shanghai Composite is 0.50% higher at 2,954 while in Singapore, the FTSE Straits Times is 0.69% higher at 3,160. The ASX 200 in Australia ended flat at 6,652.

European indices started mixed the day. DAX trading 0.15 higher at 12,766, CAC40 is 0.03 per cent higher at 5,649 while the FTSE MIB in Milan is 0.09 per cent lower at 22,458. In London, FTSE 100 is trading 0.37% higher at 7,189. The UK is scheduled to leave the EU on October 31.

In commodities markets, WTI crude oil trades 0.34 per cent higher at $53.69 as global growth worries weigh on crude. Brent oil is trading 0.44% higher at $58,96 per barrel as oil world supply will be affected by the global slowdown. Gold trades lower at 1,486, as the short term momentum turns bearish after the price trades below the 50-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is neutral as it trades higher at 8,245, hitting the daily low at 8,165 and the daily high at 8,285. Bitcoin short term momentum is neutral now as it trades above the 200-day moving average ut below the 50-day moving average. Immediate support for BTC stands now at $7,686 recent low, while next support stands at 7,406 the low from June 2nd. On the upside, resistance now stands at 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades lower at 172,15 with capitalisation now to 18.72 billion, on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, LTCUSD trades higher at 54.21. The crypto market cap capitalization now stands above $223.54 billion.

On the Lookout: The UK Parliament is scheduled to hold a critical Brexit vote on the Withdrawal Agreement Bill. In US trading session we await the existing home sales.

The central bank of China set the Yuan rate (USDCNH) at 7.0668 versus yesterday settlement at 7.0680.  

Trading Perspective: In forex markets, USD index trades 0.08 per cent higher at 97.40, the Aussie dollar trades 0.17 per cent lower at 0.6856, while NZDUSD trades 0.11% higher at 0.6413.

brexit vote
GBPUSD Daily Chart

GBPUSD trades 0.16% lower at 1.2938 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 6,000 contracts, volume increased by around 324 futures contracts.

EURUSD trades 0.10% lower at 1.1137 as the pair momentum is bullish. Immediate resistance for the pair stands at 1.1156 the daily high. On the downside, immediate support stands at 1.1132 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest increased by 3,400 contracts, the volume o decreased by around 11.200 futures contracts.

brexit vote
EURUSD Daily Chart

USDJPY is trading 0.01% higher at 108.61 having hit the daily low at 108.48 and the daily high at 108.72. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 yesterday’s high, and then at 109.06 the 200-day moving average.

In Yen futures markets open interest increased by 229 contracts, volume decreased by around 11,500 futures contracts.

USDCAD is trading 0.12% higher at 1.3103 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.