GBPUSD drops on Brexit worries
Two days of negotiations left before EU Leaders Summit, GBP under pressure: Chart
Share this:
The US Dollar was bullish against all of its major pairs on Tuesday. On the US economic data front, the National Federation of Independent Business's Small Business Optimism Index jumped to 104.0 on month in September (100.9 expected), from 100.2 in August. Finally, the Consumer Price Index increased 0.2% on month in September (as expected), compared to +0.4% in August.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 9th is expected. The Producer Price Index Final Demand for September is expected rise 0.2% on month, compared to +0.3% in August. Finally, the Monthly Budget Deficit is expected to contract to 124.0 billion dollars on month, from 200.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the AUD, CHF and GBP. In Europe, IMF expects the euro area GDP to contract 8.3% in 2020, compared with a previous -10.2% estimate. For 2021, an expansion of 5.2% is expected, down from the prior forecast of 6%. ZEW survey results of October were released for Germany (current situation at -59.5 vs -60.0, expectations at 56.1 vs 72.0 expected). The German Federal Statistical Office has posted final readings of September CPI at -0.2% on year, as expected. The U.K. Office for National Statistics has reported jobless rate for the three months to August at 4.5% (vs 4.3% expected).
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
The Dow Jones Industrial Average fell 157.71pts (-0.55%) to 28679.81 in Tuesday's trading.
Gold dropped $31.03 (-1.61%) to $1891.74.
WTI Crude Oil rose $0.76 (+1.93%) to $40.19.
Looking at the most active pairs, the GBP/USD dropped 129 pips to 1.2935. Key resistance can be seen at the 1.3085 area. The bias remains bearish on a daily chart as the pair failed to gain momentum after breaking above its 50-day moving average on Monday. Key support rests at 1.2675 with main target of 1.251 on the downside.
Source: GAIN Capital, TradingView
Happy Trading
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 9th is expected. The Producer Price Index Final Demand for September is expected rise 0.2% on month, compared to +0.3% in August. Finally, the Monthly Budget Deficit is expected to contract to 124.0 billion dollars on month, from 200.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the AUD, CHF and GBP. In Europe, IMF expects the euro area GDP to contract 8.3% in 2020, compared with a previous -10.2% estimate. For 2021, an expansion of 5.2% is expected, down from the prior forecast of 6%. ZEW survey results of October were released for Germany (current situation at -59.5 vs -60.0, expectations at 56.1 vs 72.0 expected). The German Federal Statistical Office has posted final readings of September CPI at -0.2% on year, as expected. The U.K. Office for National Statistics has reported jobless rate for the three months to August at 4.5% (vs 4.3% expected).
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
The Dow Jones Industrial Average fell 157.71pts (-0.55%) to 28679.81 in Tuesday's trading.
Gold dropped $31.03 (-1.61%) to $1891.74.
WTI Crude Oil rose $0.76 (+1.93%) to $40.19.
Looking at the most active pairs, the GBP/USD dropped 129 pips to 1.2935. Key resistance can be seen at the 1.3085 area. The bias remains bearish on a daily chart as the pair failed to gain momentum after breaking above its 50-day moving average on Monday. Key support rests at 1.2675 with main target of 1.251 on the downside.
Source: GAIN Capital, TradingView
Happy Trading
The US Dollar was bullish against all of its major pairs on Tuesday. On the US economic data front, the National Federation of Independent Business's Small Business Optimism Index jumped to 104.0 on month in September (100.9 expected), from 100.2 in August. Finally, the Consumer Price Index increased 0.2% on month in September (as expected), compared to +0.4% in August.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 9th is expected. The Producer Price Index Final Demand for September is expected rise 0.2% on month, compared to +0.3% in August. Finally, the Monthly Budget Deficit is expected to contract to 124.0 billion dollars on month, from 200.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the AUD, CHF and GBP. In Europe, IMF expects the euro area GDP to contract 8.3% in 2020, compared with a previous -10.2% estimate. For 2021, an expansion of 5.2% is expected, down from the prior forecast of 6%. ZEW survey results of October were released for Germany (current situation at -59.5 vs -60.0, expectations at 56.1 vs 72.0 expected). The German Federal Statistical Office has posted final readings of September CPI at -0.2% on year, as expected. The U.K. Office for National Statistics has reported jobless rate for the three months to August at 4.5% (vs 4.3% expected).
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
The Dow Jones Industrial Average fell 157.71pts (-0.55%) to 28679.81 in Tuesday's trading.
Gold dropped $31.03 (-1.61%) to $1891.74.
WTI Crude Oil rose $0.76 (+1.93%) to $40.19.
Looking at the most active pairs, the GBP/USD dropped 129 pips to 1.2935. Key resistance can be seen at the 1.3085 area. The bias remains bearish on a daily chart as the pair failed to gain momentum after breaking above its 50-day moving average on Monday. Key support rests at 1.2675 with main target of 1.251 on the downside.
Source: GAIN Capital, TradingView
Happy Trading
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending October 9th is expected. The Producer Price Index Final Demand for September is expected rise 0.2% on month, compared to +0.3% in August. Finally, the Monthly Budget Deficit is expected to contract to 124.0 billion dollars on month, from 200.1 billion dollars in August.
The Euro was bearish against most of its major pairs with the exception of the AUD, CHF and GBP. In Europe, IMF expects the euro area GDP to contract 8.3% in 2020, compared with a previous -10.2% estimate. For 2021, an expansion of 5.2% is expected, down from the prior forecast of 6%. ZEW survey results of October were released for Germany (current situation at -59.5 vs -60.0, expectations at 56.1 vs 72.0 expected). The German Federal Statistical Office has posted final readings of September CPI at -0.2% on year, as expected. The U.K. Office for National Statistics has reported jobless rate for the three months to August at 4.5% (vs 4.3% expected).
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
The Dow Jones Industrial Average fell 157.71pts (-0.55%) to 28679.81 in Tuesday's trading.
Gold dropped $31.03 (-1.61%) to $1891.74.
WTI Crude Oil rose $0.76 (+1.93%) to $40.19.
Looking at the most active pairs, the GBP/USD dropped 129 pips to 1.2935. Key resistance can be seen at the 1.3085 area. The bias remains bearish on a daily chart as the pair failed to gain momentum after breaking above its 50-day moving average on Monday. Key support rests at 1.2675 with main target of 1.251 on the downside.
Source: GAIN Capital, TradingView
Happy Trading
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
EUR/USD weekly outlook: Oil, inflation and NFP in focus
After coming under significant pressure in recent weeks, the EUR/USD came off its lows to finish the week on a positive note on Friday, albeit with only a mild rebound. That was not enough to prevent the exchange rate falling for the third consecutive week, as the US dollar and bond yields rallied across the board.
EUR/USD Q4 2026 Outlook: Euro at a Crossroads as Fed, ECB Tighten 9 25 2026
EUR/USD enters Q4 at a pivotal inflection point as competing Fed-ECB policy paths and persistent inflation risks collide with major technical support.
USD/JPY Q4 2026 Outlook: Hawkish Fed Pricing Clashes With Intervention Risk
The year-end tug-of-war is clear: hawkish Fed pricing supports USD/JPY, while intervention risk limits the upside.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.