- Wall Street races to fresh record highs on trade hopes
- MPs prepare to vote on Boris Johnson’s Brexit deal
- US GDP data under the spotlight
Stocks across Asia were mixed on Friday morning following another record high on Wall Street overnight.
Investors cheered more positive news on the trade front after US Treasury SecretarySteven Mnuchinstated that the United States and China would sign their phase one deal in early January.
Global riskappetite remains unfazed by President Donald Trump’s impeachment, as the Republican controlled USsenate is widely expected to vote against removing him from office. European shares are set to open in a mixed fashion as caution kicks in ahead of the US GDP data scheduled for release onFridayafternoon.
Pound bruised by hard Brexit fears
The past few days have certainly not been kind to the British Pound thanks to renewed concerns over a hardBrexit, after Boris Johnson pledged to outlawan extension of the Brexit transition period at the endof next year. Sterling is now on track for its worst week of the year, after shedding more than 2% versusthe Dollar to tradearound 1.3020 as of writing.
Members of Parliament will vote on the revised Brexit bill for the first time in the new Parliament on
Friday. Given howthe Conservatives won an 80-seat majority at the recent general election, Johnson’s
Brexit bill isexpected to pass today.
With regard to the technical picture, GBPUSD is under pressure on the H4 charts. A breakdown below
1.30 should encourage a decline towards 1.29.
Dollar steady ahead of revised US GDP
The Dollar is holding steady against a basket of major currencies ahead of the final revision of Q3 GDP
due later today. Given how markets are forecasting GDP will remain steady at 2.1%, the impact on the
Greenback should be muted. A major theme influencing the Dollar for the rest of 2019 will be US-China
trade developments. Technically, the Dollar Index is seen pushing higher if abreakout above 97.50 is seen.
Commodity spotlight – Gold
Gold could creep higher as investors await further details on the expected US-China trade deal.
Anticipation ahead of the US GDP report and possible Dollar weaknessarelikely offer additional supportto the precious metal in the near term.Given how prices are trading around $1477.50 as ofwriting, the next key point of interest will be around$1480. A breakout above this levelshould open apath towards $1500. Alternatively, a breakdown below $1475 may inspire a decline towards $1470.
