Pound in a whirl on more Brexit blather
Wednesday 21 August 2019
Comments out yesterday from Merkel and others on the Brexit backstop deal had the Pound first jumping then falling but remaining range-bound as Johnson heads to Berlin today for talks with his German counterpart. We can expect more volatility with the algos ready to feed off any scraps these days. Overall the picture has changed little at this point.
Elsewhere we've seen a bit of risk-on sentiment this morning amid some conciliatory comments from China on trade but the uncertainty continues.
GBPUSD rallied in a rush to post 1.2183 after the Merkel comments but rally sellers were poised to take full advantage. The inevitable retreat has found a base since around 1.2125 helped by some GBPJPY risk-on demand.EURGBP fell to 0.9112 in a rush (GBPEUR up to 1.0975) but been back up to test offers at 0.9150 on the GBP general retreat with EURUSD also finding dip demand again.The usual month-end EURGBP demand in the pipeline soon too.
GBPJPY held 128.50 but capped above 129.60 too so far.
I remain GBP bearish overall and will continue to rally-sell as my preferred strategy amid all the uncertainty/indecision including Brexit/political fallout but happy to buy back in the dips as always.Rinse and repeat.No reason to change my view any time soon (if ever, lol). Keep your eye on those talks in Berlin.
EURUSD remains tightly bound and has once again found support below 1.1070 but sellers will be poised around 1.1120-30 again.USDJPY has found a little dip demand on the better risk sentiment but still tightly bound between 106.20-70.USDCHF remains range bound and underpinned but tempered around 0.9800 again.The SNB always going to be vigilant.
AUDUSD remains tightly bound amid all the cross play/Gold moves with sellers around 0.6800 but buyers building around 0.6750 still. USDCAD remains underpinned but rally sellers prevailing atm helped by some CADJPY demand.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Have a good day out there one and all.
Interbank Rate 08.45 BST