Monday kickstarts another volatile week for major currencies in trading sessions. The pound currency continues its uphill climb, and the Australian dollar benefits from trade war news.
Meanwhile, the US dollar and the Chinese yuan struggles in sessions also from trade war news.
Bulls are keeping a close eye on the Australian dollar this Monday’s trading. The Australian dollar futures rose 0.28% or 0.0019 points in sessions.
The US dollar index, or DXY, slipped by 0.08% or 0.07 points in trading sessions. While the US dollar index futures for March 20 also contracted by 0.09% or 0.083 points in sessions.
The lack of clarity and details for the initial trade agreement between Washington and Beijing is making it hard for the USD and CNY.
Luckily for traders who prefer the pound, the currency is still riding on Brexit and election excitement. Last week, the sterling had a thrilling rally after the Tories, and Boris Johnson seized the UK elections.
The election victory still has its effects on the British pound currency this Monday. The pound sterling contract rallied 0.31% or 0.0041 points in trading sessions.
What’s Ahead?
This week, traders are still relying on Brexit optimism and are also focusing on trade war-related news. The two economic giants called the ceasefire that averted sanctions from both parties.
Meanwhile, the Australian dollar recently touched more than four-month highs against the greenback this Monday. The up surged of the pound currency caused the buck to weaken in sessions.
Fundamentals and inordinate volatility in this week’s market make it difficult for experts to see the currencies’ direction.
The pound currency is starting to cool down in today’s trading after a massive jolt last week. Traders are expecting that it will reach its medium-term resistance before the year closes.
Recently, UK Chief Secretary for Treasury Rishi Sunak said that the government is planning to put Brexit legislation before the UK Parliament. He said that the policymakers are pushing this before Christmas.
Although, it is still vague whether the government can achieve the feat in the short timeframe left.
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