News & Analysis

European Round-Up: Monday 11th February

February 12, 2019

Economic News Releases

  • United Kingdom Gross Domestic Product MoM at -0.4% vs. 0.0% forecast
  • United Kingdom Gross Domestic Product QoQ at 0.2% vs. 0.2% forecast
  • United Kingdom Gross Domestic Product YoY at 1.3% vs. 1.4% forecast
  • United Kingdom Visible Trade Balance at -£12100m vs. -£11946m forecast
  • United Kingdom Trade Balance Non-EU -£3600m vs. -£3800m forecast
  • United Kingdom Industrial Production YoY at -0.9% vs. -0.5% forecast
  • United Kingdom Manufacturing Production YoY -2.4% vs. 1.5% forecast
  • Mexico Industrial Production YoY at -2.5% vs. -1.6% forecast

To keep up to date with the upcoming economic events click here for our Economic Calendar.

Forex

Pound Sterling weakening today after the latest economic figures came in below the expectations. Sterling weakening the most against the US Dollar, trading at around 1.28 level towards the end of the European session.

No major news on Brexit and with 46 days until Britain is set to leave the European Union, the time is ticking for both sides to agree on a deal. Theresa May is due to give the Members of the Parliament an update on the Brexit talks tomorrow.

We saw the Swiss Franc dip at the market open today suffering a mini flash crash. Swiss Franc dipped to its lowest level since 3rd January against the Japanese Yen. However, it recovered during the European session finishing the day at around 109 level against the Yen.

Euro weakening to its lowest level for 2-months against the US Dollar during today’s session, trading at 1.27 level towards the end of European trading day. US Dollar stronger across the board, strengthening the most against the Japanese Yen – up by 0.60%.

GBPUSD – Daily

CHFJPY – Daily

EURUSD – Daily

Forex Majors Summary

Commodities 

Oil trading lower today following from losses made last week.

US Crude down by 2.15%, trading at around $51 per barrel. Brent trading at $61, down by 1.26% towards the end of the European session.

Similar story for metal commodities. Gold trading at $1,308, down by 0.40%. Silver down by 0.59%, at around $15 level.

UKOUSD – Daily

Indices

Major European Indices trading higher today. Both FTSE100 and DAX30 up by 0.90% and 1.06% respectively.

In the United States, Dow Jones Industrial Average trading lower by 0.09%. S&P 500 little changed, up by 0.01%.

Global Indices Summary

Cryptocurrencies

Mixed day for major digital currencies today.

Ethereum and Bitcoin making the most gains, up by 2.61% and 0.27% respectively.

Litecoin suffering the most losses after reaching its highest level since 14th November, down by 4.71%.

Crypto Summary

Chart of the Day by Alex Simcock

Last week we took at USDJPY as our Chart of the Day, today we will revisit it as we have moved from the set-up we saw previously.

When looking previously we saw the price getting squeezed between the 110 Handle resistance and the supporting bull trendline, we also stated that as US Dollar volatility increased we were sure to see this either break out higher or lower with some momentum and that is what we have seen today.

As the US Dollar enters it’s 8th consecutive positive day we have seen the USDJPY cross push higher and clear the 110 handle. We saw the start of this bull push overnight in the Asia session and then early into the European session we saw it finally clear 110 and clear it with conviction.

As with most of these types of breakouts, after the initial push, we saw a little bit of a drift back towards the broken level, as stop losses are triggered, before seeing the continuation of the move.

Now the next question is will the US continue to strengthen and will we see the USDJPY cross back up to last year’s levels around 114-115? That remains to be seen but this will definitely remain on the watchlist.

If you have any further questions or want to follow along for more market commentary, feel free to follow along on twitter – @Alexs_GoMarkets

By Klavs Valters  
 @klavsvalters

This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

Sources: Go Markets MetaTrader 5, Google, Datawrapper, Tradingview, CoinMarketCap