Afternoon Market Update – 17/01/2017 – by Jaz Singh
January 17, 2017After finding strong support just below the $1.20 level yesterday, PM May’s Brexit speech has boosted cable, and pound sterling in general against its major counterparts. This follows her comments that a Parliamentary vote shall be used to rubber stamp the Brexit agreement with the EU. The dollar continues its sell off from the Asian session, following comments from Trump stating that the dollar is too strong at the moment. We see USDJPY flirting with the 113.00 level to downside with the dollar index declining over 1 percent during today’s session. After a strong sell off in European bourses this morning, PM May’s address applied a more risk on tone to equity markets with the DAX back above the 11550 handle. The picture for US stocks is bearish, with the S&P500 off some 0.3 percent. In the commodity complex we see gold up over 1.1 percent off the greenback move, while crude oil as added over 2 percent in New York.
