Currency Zone

EUR/USD Intraday: consolidation.

Pivot: 1.1455

Our preference: short positions below 1.1455 with targets at 1.1405 & 1.1390 in extension.

Alternative scenario: above 1.1455 look for further upside with 1.1475 & 1.1500 as targets.

Comment: the RSI shows downside momentum.

 

USD/JPY Intraday: the upside prevails.

Pivot: 113.45

Our preference: long positions above 113.45 with targets at 114.00 & 114.20 in extension.

Alternative scenario: below 113.45 look for further downside with 113.20 & 112.95 as targets.

Comment: the RSI shows upside momentum.

 

GBP/USD Intraday: under pressure.

Pivot: 1.3160

Our preference: short positions below 1.3160 with targets at 1.3105 & 1.3070 in extension.

Alternative scenario: above 1.3160 look for further upside with 1.3200 & 1.3235 as targets.

Comment: a break below 1.3105 would trigger a drop towards 1.3070.

 

EUR/GBP Intraday: under pressure.

Pivot: 0.8725

Our preference: short positions below 0.8725 with targets at 0.8690 & 0.8670 in extension.

Alternative scenario: above 0.8725 look for further upside with 0.8745 & 0.8770 as targets.

Comment: the RSI shows downside momentum.

 

USD/ZAR intraday: rebound

Our pivot point is at 13.8400.

Our preference: rebound.

Alternative scenario: below 13.8400, expect 13.7290 and 13.6630.

Comment: the RSI is above 50. The MACD is negative and above its signal line. The MACD must break above its zero level to call for further upside. Moreover, the pair is trading above its 20 MA (13.9147) but under its 50 MA (13.9587).

Currency Zone

EUR/USD Intraday: under pressure.
Pivot: 1.1405

Our preference: short @ 1.1390 with targets @ 1.1370 & 1.1350 in extension.

Alternative scenario: above 1.1405 look for further upside with 1.1430 & 1.1455 as targets.

Comment: as long as 1.1405 is resistance, look for choppy price action with a bearish bias.

USD/JPY Intraday: the bias remains bullish.
Pivot: 113.00

Our preference: long positions above 113.00 with targets at 113.35 & 113.60 in extension.

Alternative scenario: below 113.00 look for further downside with 112.85 & 112.70 as targets.

Comment: the RSI shows upside momentum.

GBP/USD Intraday: intraday support around 1.2950.
Pivot: 1.2950

Our preference: long positions above 1.2950 with targets at 1.3050 & 1.3090 in extension.

Alternative scenario: below 1.2950 look for further downside with 1.2905 & 1.2855 as targets.

Comment: a support base at 1.2950 has formed and has allowed for a temporary stabilisation.

EUR/GBP Intraday: consolidation.
Pivot: 0.8785

Our preference: short positions below 0.8785 with targets at 0.8755 & 0.8730 in extension.

Alternative scenario: above 0.8785 look for further upside with 0.8800 & 0.8815 as targets.

Comment: the RSI lacks upward momentum.

USD/ZAR intraday: the upside prevails as long as 14.2360 is support
Our pivot point stands at 14.2360.

Our preference: the upside prevails as long as 14.2360 is support.

Alternative scenario: the downside breakout of 14.2360 would call for 14.1020 and 14.0230.

Comment: the RSI is above its neutrality area at 50. The MACD is above its signal line and positive. The configuration is positive. Moreover, the pair is above its 20 and 50 MAs (respectively at 14.3120 and 14.3187).

Brexit already having ‘negative impact on majority of UK firms’

Eight out of 10 UK firms surveyed by the Confederation of British Industry (CBI) have said that Brexit has had a “negative impact” on their investment decisions.

Almost one in five also stated that the point of no return for triggering their plans has already passed.

The powerful UK business lobby, which surveyed 236 firms – representing 101 large companies and 135 SMEs – revealed the majority of firms will implement damaging contingency plans in the absence of greater certainty on Brexit by December.

Contingency plans include cutting jobs, adjusting supply chains outside the UK, stockpiling goods and relocating production and services overseas.

“The situation is now urgent,” said Carolyn Fairbairn, director general of the CBI, who warned that as long as a ‘no-deal’ scenario remains a possibility, the effect is corrosive for the UK economy, jobs and communities.

The UK-wide survey comes as the Irish Government concludes a nationwide ‘Getting Ireland Brexit Ready’ roadshow, with more than 1,000 businesses due to attend a conference in the Convention Centre in Dublin on Thursday.

A seminar in Monaghan last Thursday, where three Government ministers heard that many Border firms had changed suppliers and have diversified to offset Brexit, was attended by 400 businesses.

Yesterday, Ms Fairbairn said the “speed of negotiations is being outpaced by the reality firms are facing on the ground”, adding a no-deal outcome will have severe implications for people’s livelihoods.

“Unless a withdrawal agreement is locked down by December, firms will press the button on their contingency plans. Jobs will be lost and supply chains moved,” she said. “The knock-on effect for the UK economy would be significant. Living standards would be affected and less money would be available for public services.”

Almost six out of 10 firms said they had formulated contingency plans, with one in five stating that the latest date to halt further implementation of contingency plans has already passed. Some 80pc of firms said that Brexit has had a negative impact, with almost seven out of 10 firms stating that Brexit has had an impact on the attractiveness of the UK as a place to invest.

“Uncertainty is draining investment from the UK, with Brexit having a negative impact on eight in 10 businesses,” said Ms Fairbairn.

The CBI said many firms won’t publicise their investment decisions, yet their impact will show in lower GDP years down the line.

The latest CBI Brexit preparedness survey was carried out between September 19 and October 8.