Brexit still grabbing the headlines as EU summit looms
Wednesday 10 April 2019
Yes folks, with the next Brexit date only 2 days away we have May pitching up at Brussels today to gain support for an extension. Tusk has already offered some generous tones for a flexible 12 month deal but all 27 EU nations have to agree. Either way we should have an answer later today but the uncertainty and shambles will continue.
Before that we have a raft of UK economic data at 09.30 GMT. Elsewhere the ECB announce their latest interest rate decision at 12.30 BST with the all important presser at 13.30 BST. No significant changes expected but as always the algos will feed off any comments even slightly off the page.
GBPUSD has been understandably tightly bound and good two-way business continues. Yesterday saw a test of the 1.3120 resistance area after rumours of a 5year extension preference from Merkel. The rumours were denied shortly after and the reality check retreat saw a test of 1.3050 before finally testing 1.3030 again before rallying.EURGBP failed around 0.8650 again but still finding dip demand between 0.8600-10 (GBPEUR resistance 1.1630) .
I remain GBP bearish overall and continue to rally-sell as my preferred strategy but I continue to respect the two-way business amid the Brexit chaos. Plenty more to come today/this week and the algos will continue to feed off the headlines.
EURUSD continues to trade tightly contained by large option interest. Don't forget that these expiries will be in play still throughout the ECB presser. USDJPY is still going nowhere in a hurry on the mixed risk sentiment/USD uncertainty but yesterday we had a further dip to look below 111.00 briefly.
USDCHF has also been tightly bound but still underpinned as EURUSD ranges tightly and EURCHF finds support now around 1.1250 as the SNB remain ever-watchful.
AUDUSD remains range bound but underpinned with large option expiries at 0.7100 and 0.7125 today while USDCAD remains tightly bound too amid the USD and oil uncertainty.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
As always I wish you good trading and I hope my updates/tweets are helping.Let's continue to be careful out there and don't get greedy. I will aim to send an update later when we know the outcome from Brussels and also add post-ECB thoughts/levels.
Have a good day out there one and all.
Interbank Rate 08.24 BST