Another Brexit roller-coaster ride for the Pound
Tuesday 2 October 2018
Stop me if you've heard this one before but yesterday we saw another buy rumour/sell fact move when it was reported that PM May was softening her stance on Brexit and up went the Pound in a rush only to fall back below from whence it started. Sound familiar ? Of course it does and we can expect plenty more of the same while the final countdown continues
GBPUSD had been banging against the decent resistance/sell interest around 1.3060 and fallen back below 1.3030 before the Brexit report came out and whoosh, up we went to 1.3122 in a flash only to fall back just as quickly and this morning has seen the pair falling further to post lows of 1.2988.GBPJPY selling on more of a risk-off sentiment prevailing has helped push it lower.Sellers now around 1.3030 and 1.3060 again then 1.3080 1.3100 and 1.3130 still with more at 1.3150, 1.3180 and 1.3200. Immediate demand now around 1.2980-85 then larger into 1.2950, 1.2930 and 1.2900. I remain a GBP rally seller.
EURGBP has been struggling to rally despite the GBP weakness as Italy-related Euro selling continues to undermine the pair. We did see a move down to 0.8857 on that GBP spike but was soon back above 0.8875 only to fail around 0.8885 (GBPEUR support 1.1250) having capped around 0.8905 yesterday prior. some bids now around 0.8865 then 0.8850, 0.8830 and 0.8800.Sellers poised around 0.8885, 0.8900 then 0.8915-20 still.I remain a dip buyer but remain cautious given the lack of rally strength still.
EURUSD continues to head lower on more rumblings from Italy with EURJPY snd EURCHF selling also helping it on its way to test decent support between 1.1520-30.Immediate bids/support still at 1.1520 and 1.1500 then 1.1485 and 1.1460 with sellers poised around 1.1560, 1.1580 1.1600 and 1.1630 still.
USDJPY has run out of steam above 114.00 and we've seen some Yen demand across the board as risk sentiment turns sour yet again and we've posted lows of 113.69. Bids still building between 113.50-60, with more between 113.20-30 then 113.00. USDCHF has also retreated on the safe-haven CHF demand to post lows of 0.9815 and still tempered by some EURCHF selling as I warned here yesterday. Support now around 1.1320 then 1.1300 still and 1.1280. USDCHF bids still at 0.9800, 0.9780, 0.9750 and 0.9730 with sell interest again around 0.9860, 0.9880 and 0.9900.
I've been highlighting an inherent weakness in the Aussie $ for a while now and AUDUSD has finally broken down through decent support at 0.7200 to post 0.7185 and remains on the back foot. Sellers now around 0.7200 then 0.7220 and 0.7250 still with immediate demand at 0.7180, 0.7165 and 0.7150. USDCAD remains undermined following the NAFTA/USMCA deal as the Canadian $ breathes a big sigh of relief.Sell interest still building around 1.2860 then 1.2880-1.2900 with buyers still around 1.2800, 1.2780 and 1.2750.
Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves.
Have a good day out there one and all.
Twitter: @MSPFX and @MikePatersonFX
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