Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.
The Daily Edge is authored by Ivan Delgado, Market Insights Commentator at Global Prime. The purpose of this content is to provide an assessment of the market conditions. The report takes an in-depth look of market dynamics, factoring in fundamentals, technicals, inter-market in order to determine daily biases and assist one’s decisions on a regular basis. Feel free to follow Ivan on Twitter & Youtube.
Brexit, Brexit and more Brexit. This week, the dynamics in the currency markets were almost exclusively dominated by the topsy-turvy state of affairs in the Brexit front. After all said and done, the market has found sufficient consolation in the anticipation of a delayed Brexit, which is seen in the market’s playbook as a temporary GBP positive as it removes an immediate tail risk. The ball seems to be moving to the EU courtyard, which means that the European Council meeting next week (21/22 March) should be the platform where an extension is agreed, in theory. As a pre-condition, the UK needs all 27 member states to agree to the delay.
In the USD and JPY markets, sellers have swayed the price dynamics as the delayed Brexit scenario firmed up the notion of ‘risk-seeking’ strategies. Running their own races, the Kiwi and the Canadian Dollar were off to a great start of the week, but only the latter has been able to sustain enough momentum to preserve most of its weekly progress. The Kiwi, as a stronger by-product version of the Aussie, has faltered as US President Trump waed us that there is no rush for the US and China to ink a deal just yet, just as more reports seem to suggest that any meeting between Trump and Xi won’t happen until April, at least. Amid the crossfire of GBP vol, the Euro has found enough buying interest for the market to apparently interpret that the fair value in the exchange rate vs the US Dollar should be back to the pre ECB selloff-led episode.
EUR/USD: Breaks Ascending Trendline, Risk Of Range Establishment
GBP/USD: Balanced Flows Despite Another Brexit Bill Passes
USD/JPY: Demand Emerges As DXY, US30Y Regain Footing
AUD/USD: Bullish Structure Violated, Sell-Side Bias Preferred
USD/CAD: Descending Trendline Breakout, Back To Bullish Dynamics