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The third week of October 2019 witnessed unexpected changes in the world of Forex Trading. The events were dominated by the highly anticipated Brexit deal and the mixed performance of the U.S dollar. Forex Broker comparison company FXBrokerFeed seeks to provide reliable updates and opinions in the FX Broker Market featuring the GBP gains after Brexit deal and the shaky dollar.
Brexit deal
The announcement of a deal between Britain and the European Union has caused an improved performance of the GPB. FXBrokerFeed noted heightened activities in the forex market. Even with the gains made by the GBP, investors are not sure how long the sterling pound will remain strong. These fears are informed by fears that legislators might shoot down any deal proposed for Brexit.
If the UK parliament rejects the deal, this may cause a stalemate which will impact on the sterling. The lack of the DUP vote plus the increasing rebellion from a section of Labour Party MPs have complicated the equation for Borris Johnson. Even with the unpredictable outcome of the Brexit-deal vote, FXBrokerFeed anticipates the GBP to continue with its bullish trend. This can be depicted by the 1.2838 resistance registered by GBPUSD on the charts with the next target being 1.3177.
U.S Dollar unpredictable performance
The U.S economy is currently facing turbulent times. The hard-economic times are because of the trade wars the country is embroiled in and the changing dynamics in the economy. The trade wars between U.S and China have proved to favor the dollar. With the dwindling hopes of resolving the trade war, investors continue to vouch for the dollar but through a short-term approach.
Although the U.S dollar has enjoyed significant gain over the week, it is taking huge hits back at home. The retail sales in the U.S are fast dipping, and this is affecting the strength of the dollar. This has provided an opportunity for currencies like the Euro to gain against the dollar. With the shaky performance of the dollar, FXBrokerFeed calls for a moderate approach especially when dealing with currency pairs involving the dollar
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