The British pound encountered volatile waters last week, concluding the session up 2.10%. Brexit was the principal driver, with Parliament kicking off a series of votes by rejecting PM May’s Withdrawal Agreement for a second time
The Greenback, according to the US dollar index, wrapped up the week in negative territory, down 0.89%. The yield on the benchmark 10-year Treasury note also hit its lowest level since early January Friday as US government debt rates closed lower for a second consecutive week. This – coupled with the index fading weekly resistance around 97.70ish – the move lower eclipsed recent gains and positioned price action within striking distance of a monthly supply-turned support area at 95.13-92.75.
he euro also enjoyed a relatively successful week, reclaiming ECB-induced losses. Largely bolstered by a soft US dollar across the board, the single currency pencilled in a 0.82% gain vs. its US counterpart. Technically, recent buying overthrew the 1.31 handle which has thus far held as support. Weekly price trading from demand at 1.1119-1.1295 and daily flow displaying room to trade as far north as channel resistance (extended from the high 1.1569) suggests further buying could be in store this week.