Market Research

The GBP/USD is trading around 1.2980 and it is very close to its previous lows. In the past this level has repeatedly proven to be a buyers’ area. Fundamentaly nothing has changed, the headlines are the same - the ongoing talks between the government and opposition resulted in virtually nothing. There are also rumors (again!) about attempts to oust May and reportedly “a senior Tory lawmaker" is behind the coup. Well, nothing new again.

You know how sometimes you have a constant pain somewhere for so long that you almost forget about it, and all of a sudden it’s gone and you realize once again what a pain it was? Or a steady ringing in your ears stops? How about the dog next door barking constantly, and suddenly it stops and you realize how quiet the neighborhood is? That’s how I felt during the week just ending: the first week in months with no Brexit noise.

European markets started a day with soft risk sentiment following the nervous Asian trading. Nikkei 225 finished a day lower by 0.84%, North Korea demonstrating irritation with US talks - and looks like North Korea is again becoming a risk factor for markets to consider. US futures are lower too and bond yields are a little heavy — the perfect picture of risk-off mood ready to kick-in.

I remain bullish on AUD/USD. Aussie popped-up and rallied towards 0.7205 early Wednesday session and this is the highest level in eight weeks. As we can see, every move down is being bought again and again, this morning buyers being increasingly upbeat with latest Chinese economic headlines. An above-forecast growth rate will likely to support the market opinion that China's economy prospects getting better now.

The USD/JPY has been slowly sliding from high at 112.09 for almost a week and this morning Asian session is no exception. The pair is in narrow declining range as US dollar is under pressure after Trump's latest attacks on Fed's policy. Yet, another factor maintaining the price is possible US-China trade deal that encouraging the risk-on mood and weakens the Japanese Yen's safe-haven demand.