GBP: Political uncertainties have once again flooded into Sterling, with contradicting reports, as yesterday saw David Davis stick to past rhetoric, stating that ‘no deal is better than a bad deal’. However, some positive developments are evident in terms of Brexit negotiations as FT reports circulated that the UK and EU have struck an agreement on dividing up WTO quotas that govern the import of farm products. GBP is marginally higher against its major counterparts, EUR/GBP has held yesterday’s high, with offers around 0.8880 level curbing and trades inside the previous day’s trading range. Cable sees similar action, residing inside of Tuesday’s range, with offers touted between 1.3300-13350. Today’s services PMI reading printed firmer than analyst estimates, subsequently pushing GBP to 1.3280, stalling just ahead of 1.33.

USD: The DXY suffered throughout most of the day, as reports of President Trump’s shortlist for the forthcoming available Fed Chair seat began to price into markets. The likelihood of a banker with a dovish skew in their views is growing, with the candidates being spoken about: Current Fed Chair Yellen, Warsh, Powell, Cohn, and outside calls of notable dove Kashkari, alongside University of Stanford’s Taylor. However, firm US data in the form of ADP Employment Change and ISM NonManufacturing PMI saw the USD-index recoup the majority of its losses.

EUR: Relatively tepid session for EUR despite the political turmoil in Spain, which looks set to take a turn for the worse with Catalan leaders likely to declare independence in a matter of days. Eyes will be on Draghi who is scheduled to 17:15.


Dollar Index H4

In our previous post we had price finding support at market - the role reversal at the top of the range. Price is geared to head up to the weekly target and our H4 stoch is fully loaded. We expect price to make a higher high.

US10Y H4

Price remains range-bound ahead of tomorrow's NFP. Positive US data saw bears sell at the top of the range. We expect price to move down to the highlighted green zone support.

S&P 500 H4

Another day, another record high. Price is currently at the weekly target. We don't expect price to move higher. Role reversal support eyed at this week's WPP with the 21 and 55 as dynamic support. Currently, the 8 EMA is in control. Markets are risk on.

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