Pound still struggling amid Brexit and Boris meltdown
Tuesday 3 September 2019
It's more of the same for the Pound as we head into a day of unknowns but one which may or may not see a Brexit no-deal departure turn into a General Election first and that opens up another can of worms. We could debate the pros and cons here all day but still be none the wiser until we get a vote in Parliament later. Suffice to say all the uncertainty has put the skids under Sterling again while elsewhere markets are also in risk-off mode amid the global fragility.
GBPUSD has fallen through 1.2000 this morning to post 1.1958. The move has been helped again by some GBPJPY supply and EURGBP demand as EURUSD finds support again, this time around 1.0930. EURGBP has been up to look at 0.9150 this morning (GBPEUR down to 1.0930) and that's helping to cap Cable but in retreat a little now as I type.GBPJPY has been down to 126.67 with USDJPY finding sellers above 106.30 again.
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.Still no reason to change my view any time soon. A big day ahead so keep your eyes on the wires.
EURUSD has broken down through 1.0960 but finding more dip demand at 1.0930 for the moment plus some large option expiry interest today at 1.0945-50. USDJPY found sellers above 106.30 again and we've been down to 105.95 this morning on renewed Yen risk-off demand. USDCHF has once again been capped by some EURCHF selling plus that renewed risk-off CHF demand but remains supported around 0.9900.
AUDUSD remains under pressure to break down through 0.6700 finally but got a lift from the RBA keeping rates on hold, albeit expected this time, but pointing to some house price growth. The currency will remain on the back foot though with the China trade talk uncertainty still in play. USDCAD remains underpinned and now helped by some renewed CADJPY supply having found good support into 1.3320 to post 1.3358.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
Don't forget I offer 1-2-1 mentoring if there's areas of trading this latest volatility that you might need some further help with.
Have a good day out there one and all.
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