Lots of Brexit noise still
Friday 25 October 2019
Not a lot to report as another week comes to end. Lots of Brexit noise still of course with Johnson challenging/bluffing Corbyn saying he will bring forward a vote on an 12 December General Election on Monday if the EU offers a delay until 31 January. I'm not saying we live in unprecedented times as the Brexit debacle continues but we've not had a Winter election for over 100 years. In any case it seems unlikely that we'll get one with opposition parties still not going to agree until No Deal is off the table. EU could possibly make a decision on extension today but now being mooted for Monday. Zzzzzzzzzzzz
Elsewhere we've seen variable risk-sentiment again understandably amid the uncertain backdrop but all ranging still so choose your levels carefully and don't get caught in the middle.
GBPUSD yesterday fell below 1.2800 briefly before rallying again after the Johnson statement but unable to hold above 1.2860 so far.Caution still needed both sides of the coin as the next stage in the Brexit fiasco plays out. EURGBP has also enjoyed good two-way business in tight range as GBP makes it mind up and EURUSD also goes on a dip/rally journey of its own while GBPJPY continues its own two-way trading amid the varying GBP/risk sentiment combo.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit uncertainty but always happy to buy back in the dips still. I will repeat yet again that this could still have a number of outcomes and remains pure guesswork/conspiracy theory at this time. Still a decent case for GBP longs in the dips if this tight range continues to hold which seems likely for the moment amid all the Brexit huff and puff.
EURUSD had a brief look below 1.1100 amid some general USD demand after the last Draghi presser was a non-event as expected and the pair failed to hold above 1.1160. USDJPY remains tightly bound yet again amid the variable USD and risk sentiment.USDCHF remains underpinned as EURUSD retreats with EURCHF still underpinned.
AUDUSD has retreated further to test 0.6800 where we have some decent option expiry interest and duly bounced but sellers remain poised.USDCAD remains on the back foot with the C$ finding some favour still but tightly bound again.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility, or how to make best use of the order boards and expiries that you might need some further help with.
Good luck to the currently very soggy Shrimpers now under new management as we take on league leaders Ipswich and of course huge hopes for both England and Wales in the rugby union World Cup semis. Bring it all on!!
Have a good day/weekend out there one and all.
Interbank Rate 08.50 BST