Pound still in the balance as markets wait on UK data
Monday 11 November 2019
Lest we Forget
Friday saw further falls in the Pound as concerns grew over a clear Election outcome (ever thus IMHO), ongoing Brexit uncertainty and then late in the day US ratings agency Moody downgraded its UK government debt outlook to Negative from Stable. This morning brings Q3 GDP, Industrial and Manufacturing production, and Trade balance data at 09.30 GMT so this last update before my holiday will arrive in two parts to enable you to get the GBP section in good time.
GBPUSD has fallen further to test decent support at 1.2760 and remains on the back foot after its lower highs from 1.3000 in recent sessions and helped by some general USD demand and risk- off GBPJPY supply again but we've seen a rally back above 1.2800 as we wait on the data.
EURGBP still tightly bound with support around 0.8600 again but failing above 0.8630.GBPJPY also continues to see good two-way trading and tightly bound.
I will continue to rally-sell GBP as my preferred strategy overall too amid the ongoing Brexit/Election uncertainty but happy to buy back in the dips still. In essence the general uncertainty and can kicking continues and for me that's still Pound negative not to mention last week's BOE dovish tones. I make no apologies for trawling out the same thoughts because for me nothing has really changed.
Second part of this morning's update with you shortly.
Fickle Forex markets ever prevailing so be patient with your entry/exit levels and orders as always, but be ready to pounce when algo-led opportunities arise.
Don't forget too that I offer 1-2-1 mentoring if there's areas of trading these tight ranges, or how to make best use of the order boards and expiries, that you might need some further help with. I develop your powers of trading discipline and psychology all learned in my 38 years in FX, including 20 as a market maker.
A reminder that I shall be taking a week's holiday (my first this year!) from tomorrow (12 November) and will not be turning any screens or phones on let alone send updates, but Les will be sending his T/A to Option C subscribers during that time still.
Have a good day/week out there one and all.
Interbank rates: 08.32 GMT