Pound suitably unfazed by latest Brexit extension
Thursday 11 April 2019
The EU have granted an extension to Brexit as expected and while not as long as some hoped it's more than May pitched for and suggests the EU are desperate for her to get their deal through parliament.
-A Brexit extension "only as long as necessary" and "no longer than 31 October" to allow for the ratification of the Withdrawal Agreement
-The UK "must hold the elections to the European Parliament" and if it fails to do this, the UK will leave on 1 June
-The European Council reiterates there can be no reopening of the withdrawal agreement negotiations
In other news the ECB duly left interest rates on hold with dovish tones and the FOMC Minutes confirmed the US too are concerned with the fragile state of affairs right now.
GBPUSD has been understandably tightly bound and two-way business continues. Yesterday saw a test of the 1.3120 resistance area a couple of times but similarly we have held 1.3050 on the retreats.
EURGBP also remains tightly bound but underpinned by the GBP supply/EUR demand scenario.
I remain GBP bearish overall and continue to rally-sell as my preferred strategy but I continue to respect the two-way business amid the Brexit chaos. Plenty more to come now in the weeks ahead and the algos will continue to feed off the headlines.
EURUSD continues to trade tightly but underpinned still following the ECB's expected tones after a dip into the 1.1220-30 support but holding as per my tweets. USDJPY is still going nowhere in a hurry on the mixed risk sentiment/USD uncertainty but yesterday we had a further dip to look at the 110.80 bids/support.
USDCHF remains underpinned as EURUSD ranges tightly and EURCHF finds support now around 1.1280 as the SNB remain ever-watchful and we've now seen fresh highs.
AUDUSD remains range bound but underpinned with large option expiries at 0.7100 and 0.7125 again today while USDCAD remains tightly bound too amid the USD and oil uncertainty.
Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.
I wish you good trading and I hope my updates/tweets are helping.Let's continue to be careful out there and don't get greedy. I will aim to send an update tomorrow morning before I head away for my long week-end break as previously notified.
Have a good day out there one and all.
Interbank Rate 08.14 BST