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  • Writer's pictureMike Paterson

Pound wobbles again amid Brexit uncertainty

Brexit is never far away from the front pages and yesterday's spat between PM May and David Davis over a fixed end-date to the UK government's "backstop" plan on customs union sent the Pound lower again.  May was forced to agree a cut-off date after Davis threatened to resign but has since refused to give any guarantee that it will not extend beyond December 2021.

GBPUSD fell to 1.3375 and has since failed to get back above 1.3450 capped now by some more GBPJPY sell interest as risk-off sentiment returns on another equity and oil market retreat.Immediate support/buying now between 1.3380-00 again then 1.3350.Sell interest at 1.3450 then 1.3480-00. Keep selling those rallies for the moment but respecting the dip demand too as I've been mentioning as we continue to range-trade.

EURGBP rallied sharply to test the 0.8830 sell interest (GBPEUR down to 1.1315) only to fall all the way back to 0.8716 this morning on general EUR supply. Buyers poised into 0.8750 then 0.8730 and 0.8700. Sellers into 0.8800 then 0.8830-35 again.

EURUSD has fallen to test 1.1750 with EURJPY,EURCHF and the EURGBP selling notable Buyers now into 1.1730 and 1.1700 with more interest into 1.1680. Sellers poised around 1.1780, 1.1800 and 1.1830.

USDJPY was initially capped at 110.00 by the large option contract interest there that I highlighted yesterday and now the risk-off sentiment has seen Yen demand take the pair down to 109.27. Buyers now into 109.00 then 108.75-80.Sellers between 109.50-60  then 109.80-00. USDCHF has fallen back again on the safe-haven plays to 0.9790 helped by EURCHF retreating to 1.1535

The Aussie, NZ and Canadian $ have all fallen too on the current wobbly commodity prices and risk-averse plays.AUDUSD has buyers at 0.7550 and 0.7530 then 0.7500.Sellers at 0.7600 but with large option contract interest there today expected to see range contained. USDCAD buyers now around 1.2960 then 1.2930 and 1.2900. Sellers 1.3030 again and 1.3050

Fickle and fragile markets prevailing behind all the noise so get your orders in to take full advantage of the moves.

Have a great week-end out there one and all.

Interbank Rate 10.30 BST GBPUSD   1.3413 EURUSD   1.1766 EURGBP   0.8773 GBPEUR   1.1398 USDJPY   109.32 USDCAD   1.3015 USDCHF   0.9826 GBPAUD   1.7710 GBPCAD   1.7456 GBPCHF   1.3178 GBPZAR   17.6833 GBPHKD   10.0795 EURHKD   8.8430

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