The Daily Edge

The Sterling has been given a major boost in the open of the Asian session as the UK and the EU agreed to extend post-Brexit trade talks beyond Sunday following a call between leaders earlier on Sunday. In a joint statement, Boris Johnson and European Commission President Ursula von der Leyen said it was "responsible at this point to go the extra mile".

To see an expanded version, right-click and select ‘open link in new tab’. The indices show the performance of a currency vs a G8 forex basket. Indicators are available to use these measures via Tradingview and MT4. 

Amid the absence of fundamental catalysts elsewhere, the Pound continues to dominate the headlines. The volatility around the currency is not for the faint-hearted as liquidity in the market quickly dries up each and every time that a Brexit-related headlines alters the market perception towards a deal or not deal in the trade talks. Not the safest conditions for market makers.

By going through my scan of the key movers in the currency space, aside from the perky Pound, the commodity-linked currencies have been the best movers as of late. The Euro, the Swissy and the USD are off to a rocky start this week, especially the latter, extending its multi-month downtrend whose origin dates back to the COVID-19 led spike from March this year. Quite a trend!

Aside from the Brexit talks going down to the wire, the events to pencil in the calendar for traders this week include. The European and US PMIs, alongside US retail sales, all on Wednesday. The very same day, in the American afternoon, the biggest event in the form of the FOMC takes place. Early Thursday in Asia, volatility is expected to be rich as well with the release of the New Zealand GDP data, followed soon after by the Australian jobs report. Later on Thursday, in European hours, the BoE and the SNB will meet. Lastly, on Friday, the BoJ must be accounted for.

Analysis of the Forex trends

In my video analysis below I use concepts such as momentum, market structures or order flow to come up with the daily outlook in the currency market.

https://youtu.be/nNVGXm7rFTc

20 Commodities available to trade at Global Prime.

Ivan Delgado