Economics
Currency markets stuck in neutral
British pound, Indonesian rupiah under pressure Despite a rather noisy week, with impressive intra-day ranges seen, the week’s close was a neutral one, with most G-10 currencies confined within their weekly trading ranges. The dollar index barely moved, closing down 0.09% at 93.27. The story was much the same in the regional Asian space, which […]
British pound, Indonesian rupiah under pressure
Despite a rather noisy week, with impressive intra-day ranges seen, the week’s close was a neutral one, with most G-10 currencies confined within their weekly trading ranges. The dollar index barely moved, closing down 0.09% at 93.27. The story was much the same in the regional Asian space, which mostly contented themselves with consolidating gains versus the US dollar in recent weeks.
Sterling was a notable exception though, as rapidly increasing Brexit concerns saw a weekly close below its six-month trendline support, today at 1.2910. The GBP/USD finished just 10 points lower on Friday at 1.2790. The technical picture is ominous now, with resistance at 1.2910, and support lying between its 100 and 200-day moving averages (DMA) at 1.2695 and 1.2735. A daily close below this zone signals deeper losses ahead. The British pound sell-off has been entirely driven by politics thus far but is unlikely to receive any help from the Bank of England, which may talk negative rates on Thursday. Sterling is likely to remain as popular as that great British delicacy, jellied eels, this week.
The Indonesian rupiah is another one to watch, closing near to 15,000.00 to the US dollar, at 14,900 on Friday. Jakarta’s new lockdown and mixed signals from the central government on that front, could mean that the Bank of Indonesia will have to intervene aggressively, yet again, to support the currency today. With a BI rate decision on Thursday as well, this week promises to be a tough one for both the central bank and the currency.
With equities off to a positive start this week, and robust China data expected yet again after impressive aggregate financing data on Friday, pro-cyclical Australian and New Zealand dollars, as well as Asian regional currencies should outperform in today’s session.

Blame The Central Banks… Say The Politicians!
Blame The Central Banks… Say The Politicians!
Authored by Bill Blain via MorningPorridge.com,
“Human Nature: Paleolithic Emotions, Medieval…
5 Cathie Wood Stocks to Buy Now
Despite recent declines in share prices, these Cathie Wood stocks are strong plays on innovation, a key driver of the global economy.
Block (SQ) — The…
If Success Has Many Fathers, Inflation Is An Orphan
If Success Has Many Fathers, Inflation Is An Orphan
Authored by Bruce Wilds via Advancing Time blog,
The proverb "success has many fathers"…
-
Economics10 hours ago
New Zealand; The canary in the coal mine
-
Companies17 hours ago
United Lithium Expands Into The US, Acquiring Large Land Position In South Dakota
-
Precious Metals23 hours ago
The Failure Of Central Banking: Politics
-
Economics15 hours ago
Dow Jones, the S&P 500, and Nasdaq price forecast after Friday’s gains
-
Economics12 hours ago
One Step Closer To Recession: Goldman Cuts S&P Price Target To 4,300; Slashes GDP Forecast
-
Economics6 hours ago
European Natural Gas Prices To Triple In “Perfect Storm”
-
Economics10 hours ago
“The Price Is Wrong”: Morgan Stanley Says Bear Market Won’t Be Over Until One Of Two Things Happens
-
Financing News17 hours ago
Sego Resources Inc.: Invitation to VRIC Booth 801