Asia Pacific Market Open – Dow Jones Prices, AUD/USD, British Pound, Brexit, US Dollar
- Anti-risk Japanese Yen[1] and Swiss Franc[2] underperformed as S&P 500[3] and Dow Jones[4] rose
- Wall Street was lifted by earnings reports from Goldman Sachs, Morgan Stanly and Netflix
- AUD/USD[5] getting ready for a reversal to the descending trend line from February next?
We recently released our 4Q forecasts for the British Pound in the DailyFX Trading Guides page[6]
The anti-risk Japanese Yen and Swiss Franc were among the worst performing majors on Tuesday. These currencies were undermined amidst a broad improvement in market mood as equities traded higher in Asia, Europe and in America. The S&P 500 and Dow Jones rallied 2.15% and 2.17% respectively. If the pullback in the former is done for now, it falls short of the more aggressive decline seen in February below.
S&P 500 Daily Chart, Comparing 2018 Major Pullbacks
The upbeat mood picked up pace during Wall Street trade as Goldman Sachs and Morgan Stanley, along with other US companies such as Netflix, beat earnings estimates for the third quarter. In addition, the markets may have pre-positioned themselves for tomorrow’s FOMC[7] meeting minutes which could reignite hawkish policy bets. Those were somewhat diminished last week amidst the broad selloff in stocks.
The British Pound outperformed despite disappointing news from EU Chief Negotiator Michel Barnier. He said that more time is needed to find an agreement on Brexit. His announcement helped top Sterling, which gained earlier thanks to a
