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Market View

Market Daily Outlook - Hard Brexit scenarios are back

Tuesday, September 8, 2020 2:01 PM GMT

The pound is tumbling against its majors as Boris Johnson is going to request the Withdrawal Agreement to change because he hasn’t foreseen the potential Nothern Ireland isolation from the rest of the UK. His determination has caused significant volatility into all GPB pairs and mostly bearish momentum. The PM has given a deadline at 15/10 for a trade agreement.

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GBPUSD 60m

GBPCAD 60m

GBPJPY 60m

Reviewing the stock markets, the US is obviously under selling pressure and we get negative indications after reading their charts. SPX500 sets the stage for the next downside extension after testing the broken channel. Traders could use the 200 SMA as additional support. NAS100 is already moving below the 200 SMA and investors anticipate the 240m candle close.

SPX500 240m

NAS100 240m

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EU market is currently flashing red however most indices are still moving in range when we review the daily timeframe.

GER30 daily

FR40 daily

Regarding major news, US and China trade relations are in red once again as Trump discusses the idea of decoupling from China. Also, US Business Optimism Index was expanded to 100.2 in August. The EU GDP fell by 11.8% in the last quarter while the Employment dropped by 2.9% more than expected. 

Checking the ZuluTrade’s Traders Sentiment, the community is currently bullish on USDJPY, USDCHF, GBPJPY, and USDCAD while bearish on EURUSD and GBPUSD.

Disclaimer

The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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