• Industry Directory

The Industry Spread

News and information for the global trading industry

  • INDUSTRY NEWS
  • REGULATORY ANNOUNCEMENTS
  • CENTRAL BANK ANNOUNCEMENTS
  • Market News
  • INDUSTRY INSIGHTS
  • INDUSTRY JOBS
  • SEARCH
  • SUBSCRIBE
  • More Infomation
    • About us
    • Our Market News Team
    • Advertise
    • Contact Us
    • Cookies Policy
    • Disclaimer
    • Privacy Policy
    • Terms and Conditions

Pound Outperforms, Bets Build on Soft Brexit, Dollar Little-Changed

January 18, 2019 by Michael Moran Leave a Comment Filed Under: Market News, Market News - Asia Open Tagged: AUD/USD, Brexit, British pound, Dollar, GBP-USD, Steven Mnuchin, Theresa May, US 10-year bond yield, US-China Trade Talks, USD/JPY

Summary: The British Pound outperformed, rising to 2-month highs as bets increased for a soft-Brexit. Although many options remain, May’s survival removed some political uncertainty for now. Elsewhere, the Wall Street Journal reported that US Treasury Secretary Steve Mnuchin was considering lifting Chinese trade tariffs. Wall Street stocks soared to the day’s highs before easing at the close as the US Treasury denied the comments.
US Weekly Jobless Claims and the Philly Fed Manufacturing Index both beat forecasts.
The partial US government shutdown entered record territory, overtaking 1995’s 21 days.

  • GBP/USD – The British Pound shrugged off Brexit blues, rallying to 2 months highs at 1.30008 before easing in early Sydney. Sterling also rallied strongly against other Rivals. The EUR/GBP cross fell to 0.8770, 2-month lows. With some of the risk associated with Brexit removed, short GBP bets against both the Dollar and other currencies are being unwound.
  • AUD/USD – reversed losses after trading to an overnight low of 0.71467, rallying to 0.7220 on the talk of US easing of Chinese trade tariffs. AUD/USD eased back to 0.7193 as the US Treasury denied the talk.
  • USD/JPY – The Dollar rallied to 2-week highs at 109.377 on the trade tariff easing talk before settling a touch lower at 109.18. US bond yields edged higher, further support this currency pair.
Trading View USD 10 Year Bond Yield Chart - 18 January 2019

Trading View USD 10 Year Bond Yield Chart – 18 January 2019

  • US 10-Year Bond Yield – The benchmark 10-year yield climbed one basis point to 2.75%, this year’s high. Earlier this year, the 10-year bond yield fell to 2.55% lows.

On the Lookout: Amidst all the noise, the Dollar Index (USD/DXY) finished little-changed. The British Pound’s outperformance has resulted from the removal of some political uncertainty. Japan’s safe-haven Yen is being unwound from the flash-crash 2 weeks ago as US yields climb. The Euro is struggling to gain ground as more ECB officials (Mersch and Nowotny) highlight Euro area economic slowdown. The Australian Dollar bounced back on the US-China trade tariff reduction talk. Emerging Market currencies all saw marginal gains.
Optimism is building on US-China trade talks while the US Government shutdown enters record territory.
After a hectic week, markets will take a breather today and focus on the data releases.
Japan’s National Annual CPI and Revised Industrial Production data (December) are due first up. The UK reports on monthly Retail Sales with Canada finishing off with Headline and Core CPI.

Trading Perspective: US Bond yields rose and have climbed off their lows to 2019 highs. This should provide the Dollar with overall support for now.

Daily FX.COM - GBP USD Chart - 18 January 2019

Daily FX.COM – GBP USD Chart – 18 January 2019

  1. GBP/USD – The Pound rebound extended to 1.30008 highs as some of the political risk has been shaken from the currency. Sterling rose against its other Rivals too and its rally was broad-based. From here 1.3000 and 1.3030 are immediate resistance, with 1.3030 formidable. Immediate support can be found at 1.2960 and 1.2920. Prefer to sell rallies. Likely range 1.2960-1.3010.
  2. USD/JPY – The Dollar Yen recovery hit 109.377. Immediate resistance can be found at 109.40, followed by 109.60. A sustained break of 109.60 will see 110.00. Immediate support can be found at 108.80 and 108.50. Likely range today 108.80-109.30.
  3. AUD/USD – The Aussie jumped to an overnight high of 072203 from 0.7180 yesterday. Immediate resistance lies at 0.7220 followed by 0.7250. Immediate support can be found at 0.7170 and 0.7140. The optimistic trade outlook has reignited support for the Battler. Any change in that sentiment could see the Aussie grind back down. On the day we can expect a likely range of 0.7170-0.7220. Just trade the range shag on this one.
  4. US Ten-Year Bond Yield – The bounce from 2.55 to today’s 2.75% should slow at these levels. There is good resistance between 2.75 and 2.80% while strong support now lies at 2.65%. Any grind higher to 2.80% will give the US Dollar added support.

Happy Friday and trading all.

Other News

  • BrNexit, May Survives Yet Again, Pound Little-ChangedBrNexit, May Survives Yet Again, Pound Little-Changed
  • Fading Trade Optimism, Gloomy Economic Outlook Smack RiskFading Trade Optimism, Gloomy Economic Outlook Smack Risk
  • May’s Brexit Deal Routed, Pound Plummets Then SoarsMay’s Brexit Deal Routed, Pound Plummets Then Soars
  • Sterling Firms Ahead of Parliamentary Vote, Risks RemainSterling Firms Ahead of Parliamentary Vote, Risks Remain

Subscribe

Register now to receive the latest news and information for the global trading industry.






Latest Market News

Michael Moran

Many Headlines, Little Movement – Dollar Grinds Lower and Marks Time

By Michael Moran

Karthik Subramanian

Market Gains Positive Bias Following Update on Sino-U.S. Trade Talks

By Karthik Subramanian

Nikolas Papas

Traders Focus on Trade Talks between the US and China

By Nikolas Papas

Michael Moran

Dollar Eases After US Retail Sales Slumps to Worst in Nine Years

By Michael Moran

Karthik Subramanian

Markets on Mixed Activity over Divided Investor Sentiment on Sino-U.S. Trade Talks

By Karthik Subramanian

LATEST INDUSTRY JOBS

Analyst – Transaction Banking & Wholesale Lending

Company: ANZ

Location: Melbourne, Victoria, Australia

Senior UX & Visual Designer

Company: Macquarie Group

Location: Sydney, New South Wales, Australia

Manager / Senior Manager – Corporate Transaction Advisory & Projects

Company: Macquarie Group

Location: Sydney, New South Wales, Australia

Finance Business Analyst

Company: Morgan McKinley Australia

Location: Paramatta, New South Wales, Australia

Analyst – Transaction Banking & Wholesale Lending

Company: ANZ

Location: Melbourne, Victoria, Australia

Latest Industry News

Vela to Provide Access to Crypto-Asset Trading Exchanges

Fintech Raises $111.8B in 2018, Up By 120 Percent, Says KPMG

TMX Group’s Fourth Quarter and Full Year 2018 Revenue Increases by 22%, Tops Analysts Estimate

Deutsche Börse Group Fourth Quarter Net Profit Drops 35%, Presents Subdued Outlook for 2019

CloudMargin Announces First Tier 1 Bank on Cloud-Based Solution

Regulatory Announcements

Byte Power Pays $33,000 for Alleged Breach of Disclosure Obligations

SEC Charges Former Senior Attorney at Apple With Insider Trading

Deloitte Japan Charged With Violating Auditor Independence Rules

Court Restrains Advanced Wealth and Richard Gardner from Carrying on an Unlicensed Financial Services Business

Intercontinental Exchange and the NYSE Launch ‘Insights’

Cental Bank Announcements

Central Bank of Egypt’s overnight rate cut by 100 basis points

The Brexit Discontinuity – Governor Philp R. Lane

Central Banks gearing up for unseen scenarios for Brexit

Riksbank: rate unchanged at −0.25 per cent

Jens Weidmann: The role of the central bank in a modern economy – a European perspective

Trending New Stories

CFTC Charges Principal of a Purported Commodity Trading Firm with Social Media Based Fraudulent Scheme

Intercontinental Exchange Announces the Launch of ICE Bonds

Turbo Tax To Make Cyrpto-Profit Tax Filing Easy

APRA Update on Implementation of Royal Commission Recommendations

Former Sydney FX Trader Sentenced for Falsifying Trading Entries

Trending News Stories

Many Headlines, Little Movement – Dollar Grinds Lower and Marks Time

Byte Power Pays $33,000 for Alleged Breach of Disclosure Obligations

SEC Charges Former Senior Attorney at Apple With Insider Trading

Deloitte Japan Charged With Violating Auditor Independence Rules

Court Restrains Advanced Wealth and Richard Gardner from Carrying on an Unlicensed Financial Services Business

Vela to Provide Access to Crypto-Asset Trading Exchanges

Fintech Raises $111.8B in 2018, Up By 120 Percent, Says KPMG

Intercontinental Exchange and the NYSE Launch ‘Insights’

CFTC Charges Principal of a Purported Commodity Trading Firm with Social Media Based Fraudulent Scheme

Intercontinental Exchange Announces the Launch of ICE Bonds

More than just a news source

Links

  • Become an Advertising Partner
  • Contact Us
  • Industry Directory

Social Media

  • facebook
  • twitter
  • linkedin

Subscribe

Register now to receive the latest news and information for global trading industry.

Copyright © 2016 — The Industry Spread Pty Ltd • All rights reserved. • Privacy Policy • Disclaimer

The information contained on this website is of a general nature only. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation or individual needs. We strongly recommend you to seek independent professional advice or to conduct your own independent research before acting upon any information contained on this website.

Information presented on this website includes but is not limited to those of brokers and technology and service providers. You should be cautious about any information on this website and should consider its source. Various factors, including personal or corporate ownership, may influence the information. The information contained on this website is only as accurate as at the date it was published. References to past performance is no guarantee of future performance.

Please read our Terms and Conditions.

All rights reserved.

This website, and the information which it contains, is the intellectual property of The Industry Spread Pty Ltd (ACN 612 938 360) and its affiliates and licensors, and is protected from unauthorised copying and dissemination by Australian law, international conventions and other intellectual property laws. All The Industry Spread product and service names and logos are owned The Industry Spread Pty Ltd. All other company and product names and logos are trademarks or registered trademarks of their respective owners in certain countries.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok