More Tariffs not ‘Set in Stone’, BoE in the Spotlight

Market Sentiment Stays Supported, Kudlow Says More Tariffs not ‘Set in Stone’

The dollar traded lower against most of the other G10 currencies on Wednesday. It lost the most against GBP, NZD and AUD, while it gained slightly against CAD and CHF. The greenback traded virtually unchanged versus EUR and NOK.

AUD/JPY — Technical Outlook

After a strong reversal on the 26thof October, AUD/JPY continues its route higher, currently testing the important 80.40 resistance zone. At the same time, the pair is trading above its upside support line drawn from the low of the 26thof October. For now, given the fact that AUD/JPY is making higher lows, we will aim for slightly higher levels.

Pound Rallies on Services Deal, Focus Turns to BoE’s ‘Super Thursday’

After suffering the most on Tuesday, the pound was yesterday’s main gainer. The British currency has been on a recovery mode early in Europe and was boosted further after UK Brexit Secretary Dominic Raab said that a Brexit deal between the EU and the UK could be agreed by the end of November. That said, the big news had yet to come. Overnight, the Times reported that UK PM Theresa May has struck a tentative deal with the EU on financial services. According to the report, as long as the UK and the EU financial regulations remain aligned, UK companies would be allowed access to EU markets.

GBP/USD — Technical Outlook

Yesterday, GBP/USD had a strong reversal back to the upside, where it broke the short-term downside resistance line taken from the high of the 16thof October. From the short-term perspective, the pair could easily continue with its new direction, and higher resistance levels could be met.

As for the Rest of Today’s Events

In the UK, besides the BoE decision and the quarterly Inflation Report, we have the manufacturing PMI for October which is expected to have slid 53.1 from 53.8. That said, we expect the release to be overshadowed by the BoE policy decision.

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JFD is a leading Group of Companies offering financial and investment services and activities.