Brexit still in focus but not the only game in town
Monday 25 March 2019
Lots going on still and the world remains a fragile place which is duly being reflected by equity market falls and risk-off sentiment generally but it's Brexit that still captures most of the headlines. Lots of week-end chatter about May trading her tenure as PM if MPs vote her deal through or having to go anyway due to pressure from her Cabinet and it's all bubbling up for a big week ahead. The UK Cabinet meet from 09.00 GMT today and we can expect a heap of headlines all day.
GBPUSD has been back up to 1.3223 then this morning back down to test 1.3150-60 support on the uncertainty only to hold and rally back to test 1.3200 where large option expiries there today and 1.3250 should help cap further rallies.
EURGBP continued its drop on Friday helped by some GBP buy-backs and solid Euro selling after that awful PMI data and fell all the way to test the 0.8530 bids/support before bouncing.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy but I continue to see good two-way business as the Brexit chaos takes fresh twists and turns.
EURUSD eventually found support around the support at 1.1280-85 but has since failed to get back above 1.1320 and remains fragile.USDJPY has found support around 109.70 after a risk-off drop led by a 3% fall on the Nikkei but has since clambered back up to post 110.14 as markets and sentiment steady a little on the European opening.
USDCHF has been range bound as EURUSD and EURCHF both steady and with the SNB ever-watchful. AUDUSD remains on the back foot but support at 0.7050 still providing a decent line in the sand. USDCAD continued to rally on Friday on softer oil and CADJPY selling to post 1.3440 but has dipped back a little this morning while still seemingly underpinned.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
The not so mighty Shrimpers once again sadly went down without a fight away at Peterborough and remain firmly in a relegation battle with 7 games to go. There is a really narrow points gap between doom and reprieve so we'll keep on believing.
Have a good day/week out there one and all.
Interbank Rate 08.08 GMT