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20.12 - pound is going to be in the center of our attention today

21.02.2019

 

The most worrisome asset in the markets today is very far away from Asian region, which was a real magnet for our attention for the last several months. But today, the spotlight is moved far away from the region, which is doing just fine, trying to digest all of the gains and recoveries that fell on it very rapidly and very suddenly.

 

And seeing, that it does so fine, we can leave Asia for a while and pay our attention to other assets. And today pound needs it the most. It is not only the fact that since the general vote that took place more than a week ago GBP/USD has been sliding. It is also the fact that today UK Parliament will vote on the Withdrawal Agreement Bill, which would require UK to leave the European Union on January 31, 2020.

 

And we all know how much traders love Brexit. SPOILER ALERT – they don’t. Brexit is one of the worst things that could possibly happen to trades and to market makers. And today, I feel that pound is going to really plunge down. After all, it has all the reasons to do so. Of course, there is a chance that from the next week on GBP is going to start crawling higher, but only if MPs are going to vote on a deal today.

 

If we are to face no-deal UK-EU divorce, it is going to pretty bad for GBP, as it is the fear of no-deal perspective that is driving GBP lower and lower these past few days. And it is only natural that we are going to pay extra attention to the vote today. It doesn’t seem that there is anything else this important for the moment.

 

Here are the main shifts for the day:

 

Topix barely moved.

Kospi added 0.2 percent.

Shanghai Composite decreased 0.2 percent.

Hang Seng from Hong Kong grew 0.1 percent

S&P 500 futures dropped 0.1 percent.

Euro lost 0.1 percent - $1.1117.

Pound dropped 0.5 percent - $1.3019.

Yen added 0.2 percent – 109.3 per dollar.

Canadian dollar decreased 0.1 percent - $1.3131.

Tesla added 2.8 percent - $404.04.

Apple recovered 0.1 percent - $280.02.

Facebook grew 1.8 percent – $206.06.

Amazon increased by 0.5 percent - $1792.28 per share.

Google advanced 0.25 percent - $1356.04.

WTI grew 0.1 percent - $61.13 per barrel.

Brent increased 0.15 percent - $66.64 per barrel.

Gold grew 0.1 percent - $1479.2 per ounce.

Silver increased 0.3 percent - $10.07 per ounce.

Platinum lost 02 percent – $932.24.