FX168 Financial Newspaper (Hong Kong) - The news of Brexit on Monday (November 19) still affected the market trend. The British pound still fluctuated violently in the session. At present, it has risen slightly and the trend is unstable. In this uncertain environment, gold failed to play its safe haven role and still struggled around 1220.
In view of the trend of sterling and gold in the situation of Brexit, the agency FXTM wrote a brief analysis, as follows:
British Prime Minister Theresa May may face the threat of no confidence vote, which will seriously affect the trend of sterling this week.
Due to the uncertainty related to the British withdrawal from Europe and the growing political instability of the British Parliament, the British pound has been in a difficult situation in recent days.
Theresa May's war on Britain's withdrawal from Europe this week is expected to cause a storm. She hopes to get support from British enterprises in EU affairs. In view of this, the pound may play another roller coaster market in the future.
If the vote of no confidence becomes a reality, it may not be conducive to the UK's exit negotiations, because changing leaders at such a critical stage will only cause further uncertainty - ultimately complicating the negotiations. Even if Teresa May can overcome this test, the next major test will be to get her agreement passed in Parliament.
The GBP/USD European market rose slightly in the morning after the EU's chief negotiator in charge of Brexit proposed to extend the transition period to the end of 2022.
Despite its recent rise, the uncertainty and political risks of the UK's exit from Europe may limit its upside.
On the whole, the fate of sterling obviously depends on the result of Brexit, which continues to be reflected in the price trend.
As for the technical trend, the continued weakness of the pound below 1.2910 may stimulate short sellers to return to the low of 1.2750.
The market originally thought that gold would perform prominently today due to the uncertainty related to the withdrawal from Europe, Sino US trade tensions and the weakening of the US dollar. However, the trend of gold is on the opposite side, Gold price Continue to struggle near the 1220 pass.
The weakness of the gold market may be the result of profit taking and the expectation of US interest rate hike.
Technically, the prices on the daily chart are in the bullish channel. The gold price is still supported above 1213 to some extent, and the intraday breakthrough of 1224 dollars may push the gold price up to 1233.50 dollars.
(Source of golden day chart: FXTM, FX168 financial network)
At 22:16 on November 16, Beijing time, spot gold was reported at 1220.20 dollars/ounce.
Checked by: Calm down
