Pound recovers some poise amid Brexit delay talk
Monday 25 February 2019
Some positive US-China trade talk vibes have helped risk sentiment but once again it's Brexit stealing a lot of the headlines as the countdown to whatever continues. Increased/renewed talk of delays on pushing the final button with timing rumours of 2 months from the UK but EU talk that the delay may as well be pushed back to 2021 only adding fuel to the "will we ever get Brexit at sll" debate. All part of a preconceived agenda between May and the EU? The jury remains well and truly out.
GBPUSD had a look down at 1.2970 as per my tweet @MikePatersonFX and we've since been back up to test 1.3100 on the Brexit delay talk, GBPJPY risk-on demand and a generally softer USD. EURGBP had a move up on Friday to look at 0.8730 (GBPEUR down to 1.1454) helped by the general GBP weakness and some month-end demand anticipation but since back down to 0.8667 (GBPEUR up to 1.1538) on the renewed GBP demand.
I remain GBP bearish overall and continue to rally-sell. I'll repeat that there is still no actual change as far as I'm concerned right now.The latest Brexit sentiment changes only highlighting how fragile/fickle the issue remains while the political mess unfolding can not be deemed positive. Equally there are plenty in favour of buying dips at the moment too so I continue to see good two-way business.
EURUSD is still ranging and looking a little soggy but still underpinned by the usual dip demand while
USDJPY has found support again above 110.50 again and continues to trade tightly.
USDCHF also continues in a 0.9980-1.0020 range with EURCHF still tightly bound.
AUDUSD has found some dip demand on the positive US-China trade talk albeit with some friction still while
USDCAD continues to trade narrowly after yet another softer USD-led retreat but underpinned by some softer oil sentiment.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
On Saturday the mighty Shrimpers travelled north and earned a point but once again it was more a case of two points lost. Hey ho, we go again.
Have a good day/week one and all.
Interbank Rate 08.20 GMT