A couple of days back, the British pound was the worst-performing currency, which was evidenced with its sharp fall as compared to the other major countries across the globe. Prime Minister Theresa May had initially planned to conduct the Brexit vote on Tuesday and as such the last few days held a critical significance. Nevertheless, after the parliament block, in fact, the sterling saw a lower bottom. John Bercow, the House of Commons Speaker says it is imperative that this deal is ‘fundamentally different’. Time is short as on March 29th, the UK is scheduled to leave the European Union. And as such, from the EU, it is essential that May extends an official Article 50 extension request. Also, the request necessitates an approval from the remaining 27 states (in all) and accordingly, the extension can now be requested at the next Thursday meeting of the EU Council.

However, the challenge is that May has failed to ask this request, and this is still pending. All along, it has been noticed that the EU dominated the situation, and in absence of the withdrawal bill approval, May is left with minimal substantiation to request the ‘short technical’ extension – as the preferred move of choice with May. In these circumstances, it is expected that the Prime Minister would be challenged by an extended delay, which could constitute a second referendum mandate. Notwithstanding, sterling is in thick waters, in case, May chooses to refrain from requesting an extension by Thursday. Thus, implying the decision to be left for the penultimate hour with a potential chance of an emergency summit by the EU March 28.

Clearly, this Thursday, as the Bank of England gets into a discussion, these developments will cloud the forthcoming talks and the GBP/USD could see a further drop to 1:30 this week. This situation is unpreventable unless by Thursday, enough changes are enacted by May or sufficient support is magically garnered by May for the support of her third withdrawal – bill vote. Irrespective, a further drop in GBP is anticipated, even prior to BoE, in case, Tuesday’s labour market reports reflect a slide. Since 2011, according to the PMIs, the employment sector has seen the biggest decline and equally the manufacturing sector indicated the highest rate of job losses in the span of the last six years.

As such, basis the eco-system, in combination with the technical expertise, it can be safely inferred that GBP is increasingly becoming vulnerable to market forces and this weakness is identified through lower highs and lower lows.

In fact, today the world’s foreign exchange markets and the trading scenario seems like an exciting place for the trading professionals with the right strategies, and skills sharpened through the best affiliate programs. These are the programs, which provide a comprehensive support from a trade professionals, and also cover financial instruments such as stocks, bonds, commodities, and derivatives.

For instance, the market is not really explosive as regards the other major currencies. In fact, Greenback started the NY session under excessive pressure and demonstrated a recovery in its losses during the day. Also, the stocks have shown a positive graph, as compared to the earlier losses.

Specifically, the dollar is expected to be impacted by the Federal Reserve’s Monetary Policy meeting and not to forget the Press conference of Fed Chair’s Powell’s, which also would be instrumental in the dollar movement. In addition, the ‘no-resolution’ status of US-China trade tensions, in combination with Brexit, the UK has no option but to adopt a patience stance.

Though the trade numbers, were more robust than the expectations, and as such, the EUR/USD did see a lift. However, the 50 and 100 day SMAs killed the fire. Also, the commodity currencies are showing an average graph, irrespective of the New Zealand stocks on a record high and the strong trade numbers from Japan. In addition, the German ZEW survey indicates a downside risk and this will definitely impact the European investors.

Yes, indeed the Forex is going to actually keep us on our toes for the next few months!

In the financial markets, with a special mention of the forex market, February was a lukewarm month. This can be largely attributed to the numbers adopting the same graph as was evident during the start of the year. This continued similarity in curves in fact, dimmed the volatility in the US market, the continued increase in the gold and silver and the range-bound fluctuation in US dollar.

Definitely, the end of 2018 witnessed a steep decline for the US stock market around last Christmas, an impressive rebound is evident in the market this year. The S&P 500 index, in fact, is showing a revival and growth by more than 20% since the lowest point in December in 2018. The review and comparison of historical figures shows that these numbers match the average stock market returns of about three years.

Though, as per the latest figures, a resistance area is evident for the index in the chart – at around 2,800. And this extended lull, makes it crucial to invade and emerge on the other side before the market experiences higher prices. As of now, the trade scenario for S&P 500 seems challenging and also, the future direction is apparently neither visible nor indicated.

Gold is the new trade

It is anticipated that most slow-moving asset or also famously referred as the most boring item – Gold, may rather defy the set notions. An impressive 14% return has been logged in by gold, which is a good rebound, considering the mid-August bottom hit, last year.

Definitely, gold has newer avenues to conquer. Until the 1,350 to 1,360 area, gold does not seem to show any resistance. Also, another 2% growth is expected in the forthcoming days. In case, gold is able to break the 1,360 levels, it is expected that the market is in significant gains, however, until gold is able to reach higher prices, the market does not anticipate any more significant resistance.

Dollar in trouble

Greenback, off late, is exhibiting some weakness and the US dollar numbers are slowing down with the last month showing relatively better picture. This weakness though cannot be considered permanent as the coming month shows great prospects in the graph having the probability to grow in any direction.

Currently, the dollar is clearly caught in a trading range – and though it cannot be assumed as to how dollar will behave in the coming days – this firm support at 95- level is quite daunting. Over time, as per the trade analysts the dollar can possibly move lower than expected, in case the dollar shows a movement below this level. And in the best case scenario, a higher climb is expected from the dollar, in case, it is able to free itself from the 97.50 area and move above.

European stock blue chip

The blue-chip stock and indices have been consistently registering strong growth. Particularly, the DAX and CAC have shown a climb between the near about of 1.0%, as well as the FTSE has shown a growth of 1.38%. The German Services PMI, on the release front showed an improvement to 53.1, though a steady state was seen in Eurozone Services PMI at 51.2 points. Though, at the worst fall since December, Eurozone retail sales had plunged 1.6% in February. Also, the State of Union address of President Trump before Congress and Germany releases factory orders have impacted the trading scene. The blue-chip indices particularly have been strengthened by the bank shares. This trend was seen in February end with BNP Paribas and Credite, in France gaining over 2.0%. Also, with a 2.0% gain by Agricole and 1.9% gain at Standard Chartered, the European banks have shown a good climb. And going forward are expected to continue to gain ground the coming quarter.