The USD has become soft. What's the tactical outlook against its main counterparts?
Brexit Risks in Focus
Information is not investment advice
Ichimoku Kinko Hyo
GBP/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAG/USD: Silver stands below 50% retracement area and seems that the correction has momentum.
EU Market View
A gauge of Asian shares was knocked off a 2-1/2-year peak on Wednesday, as halted COVID-19 vaccine trials and an impasse in U.S. stimulus talks soured risk appetite, while oil was hit by demand concerns amid growing coronavirus cases. Looking ahead, highlights from macroeconomic calendar include ECB's Lagarde, Lane and Mersch, Fed's Clarida and Kaplan, BoE's Haldane, IEA Oil Market Report.
Investors are also watching tensions between the European Union and Britain after the EU demanded "substantive" movement on Tuesday on fisheries, dispute settlement and guarantees of fair competition in their talks on a post-Brexit trade deal.
EU Key Point
- EU leaders to say no breakthrough in Brexit talks
- Japan August final industrial production +1.0% vs +1.7% m/m prelim
- Germany reports 5,132 new coronavirus cases in latest update today
Asia-Pacific stocks lacked firm direction as momentum faded from the record-setting performance on Wall St, where the S&P 500 and Nasdaq printed fresh all-time highs
Fed's Powell said a slowing recovery and a surging pandemic meant the US was entering a "challenging" few months, with the potential deployment of a vaccine still facing hurdles.