Pound in a Brexit whirl
Wednesday 2 December 2020
See? While the cat's away the mice will play.I take a day off for the first time in ages and the forex gods run amok. More fun this morning as I return with GBP having a timely dip on some negative Brexit news. One thing having a day off proves though is that it doesn't matter missing a few moves. There will always be more coming along to trade.
I warned again yesterday that Brexit remains the very large elephant in the room this week and so it's proved with GBP rallying yesterday on some vague "tunnel" comments but then diving again this morning on another reality check with further headlines from Barnier suggesting no deal is back in town.
Elsewhere the usual firm but variable risk and EUR underpinned with EURUSD breaking up through 1.2000 again and this time forging ahead to post 1.2088 triggering a few stops along the way.
GBPUSD has been up to test 1.3450 but this morning back down to 1.3340 while EURGBP enjoyed the EUR demand to break up through 0.9000 and now pushing on to post 0.9045 after holding 0.8980 in the retreat as GBP falls again this morning. I remain a dip buyer overall and I hope the steer has helped.GBPJPY rallied to test 140.50 as GBP firmed and risk sentiment remains positive but since looking at 139.50 as I type as GBP falls.
I stay poised to sell GBP rallies as my preferred side and buy back in the dips as ever.Patience continues to be a virtue and rally-selling in GBPUSD is still bringing some reward but entry level key as always. Definitely still expecting dip demand as I've warned for a while now. Brexit still the large elephant in the room.
USDJPY has found support into 104.20 yet again and now breaking up through 104.50 to post 104.65 on some general USD demand appearing. EURJPY has found some solid support now at 125.60 as core pairs continue to find support/demand amid the generally firmer risk and EUR buying. EURUSD continues to find dip demand after that month-end retreat and after bursting through 1.2000 yesterday has been up to 1.2088 as some start of month re-balancing took place with USD softer generally. USDCHF held 0.8980 amid yesterday's sharp EURUSD rally and with EURCHF underpinned too with the SNB still ever watchful.
AUDUSD held around 0.7340 but has duly failed into 0.7400 again helped by some more large expiries today. USDCAD failed above 1.2980 then 1.2950 this time around and now testing 1.2920 as I type helped by some CADJPY demand again. Good sell interest between 1.2950-1.3000
Markets are ever-fickle so don't forget to contact me if there's areas that you might need some further help with.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.30 GMT