ECB’s Lagarde Boosts the Euro, Pound Tumbles on Brexit Concerns

The ECB Does not Target FX, No-deal Brexit Chances Increase

The US dollar traded higher against most of the other G10 currencies on Thursday and during the Asian morning Friday. It recorded the most gains against GBP, and then against NOK and NZD, while it underperformed slightly against CHF and EUR. The greenback was found virtually unchanged versus AUD.

EUR/USD — Technical Outlook

EUR/USD traded higher yesterday, following ECB President Lagarde’s comments over the exchange rate, but hit resistance at the 1.1917 barrier and then it pulled back to its pre-ECB levels. Overall, the pair continues to trade above the upside support line drawn from the low of May 14 th, and thus, we would consider the near-term outlook to still be positive.

GBP/USD — Technical Outlook

Cable tumbled yesterday, falling below Wednesday’s low of 1.2885, thereby confirming a forthcoming lower low. That said, the slide was stopped near the 1.2775 territory. Overall, since Monday, the pair has been trading below the prior upside line drawn from the low June 29 th, while since September 1 st, it’s been respecting a new downside resistance line. All these technical signs paint a negative near-term picture, in our view.



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