empty
10.10.2017 10:45 AM
Global macro overview for 10/10/2017

Global macro overview for 10/10/2017:

The British Prime Minister Theresa May has outlined the contingency plans for leaving the EU without a deal. This scenario is known in financial media as "hard-Brexit", but this is the first time UK PM delivered a clear scenario regarding this situation. May said in the speech in British Parliment yesterday: "While I believe it is profoundly in all our interests for negotiations to succeed, it is also our responsibility as a government to prepare for every eventuality", which means the UK government was prepared to walk away from Brexit talks anytime without a deal. According to the document presented by UK PM, the legislation will create a new "standalone" system for the UK and ensure value-added tax and excise laws continue to function if the country crashes out of the bloc without a deal.

May intervention came at a sensitive time for the Brexit negotiations: this is the fifth round of talks and the deadline for the talks is just in 18 months. Boris Johnson, the Secretary of Foreign Affairs, welcomed the announcement and urged lawmakers to support her strategy as he said: "She (Theresa May) has reaffirmed the destination of a self-governing, free-trading, buccaneering and Global Britain taking back control over our laws, money, and borders."

The latest round of Brexit negotiations will end Thursday and are the last before EU leaders meet for a summit next week and will decide how talks should proceed. Before this will happen the British Pound might be supported across the board, especially against the two major currencies: USD and EUR.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market has bounced from the technical support at the level of 1.3030 and now is testing the dashed black trend line from below around the level of 1.3181. Nevertheless, the key level to the upside is the resistance zone between the levels of 1.3220 - 1.3293, so as long as the price will stay under this level, the outlook remains sideways to bearish.

This image is no longer relevant

Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Gold prices are showing a positive trajectory after an intraday decline to the $3275–3274 level. The renewed demand for safe-haven assets is driven by geopolitical risks, including the prolonged conflict

Irina Yanina 18:52 2025-05-09 UTC+2

DXY. The Dollar Holds Out Hope for a Recovery

Today, the U.S. Dollar Index (DXY), which tracks the greenback's performance against a basket of major currencies, is in a phase of bullish consolidation after reaching an almost one-month high

Irina Yanina 11:31 2025-05-09 UTC+2

Markets Will Open Their Eyes and Close Their Ears

"Better go and buy stocks right now! Thanks to the White House's trade policy, the U.S. will attract $10 trillion in investment. This country will be like a rocket going

Marek Petkovich 11:10 2025-05-09 UTC+2

The U.S. and U.K. Sign a Trade Agreement

The British pound fell in response to the news that the U.S. and the U.K. had signed a trade agreement. However, there are many nuances that need to be clarified

Jakub Novak 09:31 2025-05-09 UTC+2

Has Everyone Started Believing Trump Again?

The U.S. dollar resumed its upward trajectory, while several risk assets dropped sharply after U.S. President Donald Trump stated that he expects the upcoming trade talks with China, scheduled

Jakub Novak 09:28 2025-05-09 UTC+2

The European Union Prepares New Tariffs Against the United States

It has come to light that the European Union is planning to impose additional tariffs on U.S. exports worth €95 billion if current trade negotiations with President Donald Trump's administration

Jakub Novak 09:25 2025-05-09 UTC+2

GBP/USD Overview – May 9: The Bank of England Confuses Traders Even More

The GBP/USD currency pair moved downwards first and then upwards on Thursday, indicating that the market has not yet decided how to interpret the Bank of England's meeting results

Paolo Greco 04:05 2025-05-09 UTC+2

EUR/USD Overview – May 9: Powell and the Fed Changed Nothing

On Thursday, the EUR/USD currency pair continued to trade within the same sideways channel, clearly visible on the hourly chart, almost until the evening. As we warned, the outcome

Paolo Greco 04:05 2025-05-09 UTC+2

BoE Is Concerned About the Economy

I regularly monitor three central banks, each representing an almost entirely different approach to monetary policy. On Thursday, the Bank of England cut interest rates, citing concerns over slowing economic

Chin Zhao 01:35 2025-05-09 UTC+2

The Fed Chair Is Steadfast as Steel

Everyone has already had time to review the results of the recent Federal Reserve meeting. In this article, I want to highlight a few positive points for the U.S. dollar

Chin Zhao 01:16 2025-05-09 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.