13 December 2019 08:33
Daily thread to exchange ideas and to share your thoughts Meanwhile, US and China are seen moving closer towards some form of trade truce and that has kept risk trades more buoyant since overnight trading. A combination of both events are providing the right kind of tonic for risk assets to stay underpinned today with the dollar also finding itself in a precarious spot amid key technical breaks against some major currencies. EUR/USD has broken back above its 200-day MA; GBP/USD has broken well above its 100 and 200-week MAs; AUD/USD has broken back above its 200-day MA; NZD/USD is running further upon a break of its 200-day MA. As we clear the UK election hurdle, it's now back over to trade to see whether or not there are any more shocks and surprises to upset the risk mood ahead of the weekend. What are your views on the market right now?
Share your thoughts/ideas with the ForexLive community here. Happy Friday, everyone! Hope you're all doing well as we get things going in the session ahead. There was no drama in the UK election as the Conservatives book a landslide victory and that has helped the pound soar with cable flirting with the 1.35 handle. GBP/NZD is solidly bid with exit polls forecasting a big win for Tory party in the UK elections.
Markets were expecting PM Johnson to score a big win. GBP/NZD is eyeing the biggest single-day gain in over three years. The pair is currently trading at 2.0362, representing a 2.09% gain on the day. That is the biggest daily rise since Nov. 10, 2016. On that day, the pair had gained 2.14%. Pound picked up a strong bid in early Asia after the exit polls of the UK elections predicted a landslide victory for the incumbent Prime Minister Boris Johnson. As per the latest reports, Johnson's Tory party is likely heading for the biggest election win since Margaret Thatcher. A decisive Tory victory will clear the way for Johnson to take Britain out of the European Union (EU) on Jan. 31. It would also clear the way for the party to make good on its pledge to quickly name the next Bank of England governor, according to Bloomberg's Brexit editor Edward Evans. That said, currency markets seem to have priced in a Tory victory. The GBP/USD pair has rallied by more than 1,000 pips in the last two months. Hence, a "sell the fact" pullback cannot be ruled out following the official confirmation of Tory party victory. In that case, GBP/NZD will end the day with lesser gains. Technical levels