Pound rallies on latest Brexit talk
Wednesday 3 April 2019
Another day another turnaround in Pound sentiment as the chances of May forcing through some version of her ultra-soft Brexit deal increase with her plan to seek co-operation from the opposition Labour Party and seek extra time from her EU cohorts. Risk sentiment turns positive again as China data improves and a trade deal with US supposedly coming a little closer.
GBPUSD had a brief look below the 1.3020-30 area I've highlighted but held well. From there it's been a steady trip higher to 1.3194 amid the latest Brexit developments and now formed a base at the previous resistance line at 1.3120
EURGBP has fallen all the way back to test 0.8500 (GBPEUR up to 1.1760) on the stronger Pound and helped by a still soggy Euro.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy but I continue to see/respect the two-way business as the Brexit chaos takes fresh twists and turns. If anyone needs further guidance on any FX matters in these uncertain times then do contact me for details of 1-2-1 mentoring sessions or I will be happy to visit your offices.
EURUSD held 1.1180-85 but rallies still remain weak with EURGBP supply outpacing EURJPY and EURCHF demand.USDJPY demand notable again from the JPY selling but still struggling to make much headway to the topside.USDCHF has also found itself underpinned still as EURUSD remains on the back foot and EURCHF finds support with the SNB remain ever-watchful but still finding it tough to crack 1.0000.
AUDUSD duly held 0.7050 where I had noticed decent support for a while now and has rallied well on better Chinese and Aussie data plus AUDJPY demand but still ranging. USDCAD has fallen further after failing at 1.3380 helped by firmer oil prices and CADJPY demand still helping to support the Canadian$
Fickle Forex markets ever prevailing so be ready with your orders as always.
Have a good day out there one and all.
Interbank Rate 07.50 BST