The UK election campaign will be one of two strategies. The Tories will build their case around their Brexit deal while Labour will try and create a narrative around the future for Britain over the next five years (trying to move beyond their promise to renegotiate and offer the deal to the electorate via a second referendum which is likely to be on the manifesto).
Archives
Chart pack attached.
Chart pack and analysis attached.
Dollar holding below its recent highs but still looks like a corrective consolidation framed in a longer-term uptrend. That applies to most of the crosses, with perhaps the exception of the yen. Equities have rolled over with the most pronounced break being in Europe.
Bit more currency volatility after the Easter break with the dollar starting strongly, moving to its recent highs in dollar index terms. We're not quite at point of capitulation but if this move doesn't reverse it could finally deliver the long awaited bullish dollar break.
Currency's remain trapped in ranges, with no sign of any immediate break that could snap them out of these bounds. The longer-term trends remain intact but these periods of consolidation can be lengthy before these primary drivers reassert themselves. Overall it's still a strong dollar story.
Currencies have ranged for the past week, with dollar ceding a little ground. But not enough to derail the overall dollar bull story. Bond yields have tried to edge back but remain locked in longer-term downtrends which implies still lower yields.
Dollar has managed to rebound after failed move lower last week, but DXY still capped by the key 98.00 area. That means euro remains under pressure, yen and Cable more finely balanced (for now). Bond yields fell to new lows but have backed off over the last few sessions.
A bit more FX volatility but nothing sufficient to derail underlying trends towards a stronger dollar, even if some decent support areas were temporarily breached. Really this just suggests momentum is lacking and that trends might take a little longer to play out.
Dollar remains in a corrective phase overall, but the longer-term bull trend still looks good, meaning an eventual push through 98.00 on DXY. On the rate side core bonds are in ranges for the moment, reflecting the adjustment central banks have made with regards to monetary policy guidance.
Weekly FX, bond, equity index and commodity technical charts
Weekly FX, bond, equity index and commodity technical charts
Weekly FX, bond, equity index and commodity technical charts
Weekly FX, bond, equity index and commodity technical charts
Politics briefing – covering the main global political events and associated risks
Weekly FX, bond, equity index and commodity technical charts
Weekly FX, bond, equity index and commodity technical charts
