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  • Writer's pictureMike Paterson

Pound in a whirl on more Brexit uncertainty

I've been warning for a while that the uncertain and long shadow of Brexit will continue to play out on the Pound and yesterday we saw that in droves. Positive talk once again from Germany, and then later denied, saw GBP rally sharply only to fall back in rapid time too

Erlier GBPUSD had finally broken that decent line in the sand at 1.2800 to post 1.2785 but had already bounced to 1.2820 when the German news broke and we saw a sharp spike to eventually post 1.2983. Following the denials we saw a retreat to 1.2884 but on the basis of no smoke without fire we've seen some underpinning since helped by general US$ supply. Sellers now poised around 1.2950 then 1.2980 still and the psychological 1.3000. Demand building around 1.2900 then 1.2880 and 1.2850. I remain GBP bearish and a rally seller but caution advised again.

EURGBP fell to 0.8955 in the turmoil but found buyers of its own down there to post 0.9020 as GBPUSD retreated and Euro buyers returned. Sellers now poised between 0.9020-30 with sizeable option contracts rolling off there today then 0.9050 and 0.9080 with the barrier option at 0.9100 still casting a shadow .Immediate demand being seen around 0.9000 again then larger into 0.8980 and 0.8950 still then 0.8930 which remains a key area as does 0.8900.

EURUSD rallied back to post 1.1660 on renewed general USD demand and continues to look underpinned but rally sellers still poised.Demand around 1.1600 with large options in play today then 1.1580, 1.1560 and 1.1530 with sellers still around 1.1660, 1.1680 and 1.1700.

USDJPY rally sellers have prevailed with the 111.80 area remaining a decent line in the sand with immediate sell interest around 111.50but buyers remain around 111.00 then 110.80. USDCHF has has also dropped back below 0.9700 and remains delicately poised with more sellers now at 0.9730 0.9760 and 0.9780. Dip demand still expected though into 0.9750 and 0.9700

AUDUSD had a decent rally but has once again failed above 0.7200. Sell interest still at 0.7200 then 0.7250. Buyers regrouping around 0.7180 then 0.7150. USDCAD has fallen back to 1.3162 amid the general US$ selling and some positive noises about a NAFTA agreement but nothing signed off as yet and the uncertainty remains. Some buyers still around 1.3160 and 1.3130 then larger into 1.3100.Sellers around 1.3200, 1.3220 then 1.3250.

Fickle Forex markets ever prevailing, so get your orders in to take full advantage of these moves. Yesterday's sharp price action in GBP were a classic example.

Have a good day out there one and all.

Interbank Rate 08.48 BST GBPUSD   1.2913 EURUSD   1.1636 EURGBP   0.9007 GBPEUR   1.1101 USDJPY   111.26 USDCAD   1.3177 USDCHF   0.9694 GBPAUD   1.7971 GBPCAD   1.7024 GBPCHF   1.2525 GBPZAR   19.8162 GBPHKD   10.0208 EURHKD   9.0277

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