The British pound faced a major sell-off. It has not been so low since the Brexit referendum. The pound’s downtrend continues both in the short and the medium term. The new British government considers a no-deal Brexit to be the main scenario since Brussels refuses to negotiate and discuss a number of other conditions. This situation was followed by a highly negative reaction of the pound’s traders, and the British currency plummeted. Currently, it is extremely oversold and unstable. The news on Brexit may push it lower or reverse it at any moment. Today the pound/dollar pair touched 1.2120 and rebounded. Further selling does not seem to be worthwhile. Returning above 1.2210 will indicate that buyers are ready to get back to 1.2350. This scenario is in priority as the Federal Reserve is anticipated to lower its interest rates on Wednesday, thus strengthening the greenback’s bears. Meanwhile, the single currency managed to handle the pound’s nosedive this time. The euro/dollar pair has gained 2% since the beginning of the week. Usually, such movements indicate high market turbulence. However, the euro is trading calmly against the US dollar as investors prefer to take a wait-and-see stance prior to the Fed’s
meeting. The most popular pair remains in a descending range near 1.1140. Today speculators are going to look at a number of important reports from the US and the eurozone, including Germany’s preliminary consumer price index. The Swiss National Bank faced a complex situation once again as a rather quiet period for the franc finished. Economists may intervene in the Forex market in order to support the national currency. Therefore, the franc’s buyers should be highly cautious. On Tuesday the dollar/franc pair continues its downward movement trading at 0.9901 during day hours. Gold is in the green zone. Traders expect the Funds rate to be reduced. Besides, they are awaiting the outcome of senior US and Chinese representatives’ meeting. As we have already mentioned, the trade talks began in Shanghai today.