The British pound is at least stable after a recovery rally yesterday on the back of May’s confidence vote victory. While this offered some small relief for sterling, the pound remains close the lows for the year. The parliamentary vote still needs to be overcome, with the prospect of a ‘no deal’ still on the cards.
The GBP/USD is unchanged this morning, with the EUR/GBP following suit after falling back from the highs yesterday. The GBP/JPY is more positive, making minor gains which build on yesterday’s rally.
The pound’s recovery is helping to fuel a general exit from the US dollar, with the dollar index falling back this morning from the highs.
The EUR/USD is unchanged after making gains yesterday in line with general dollar weakness. The AUD/USD remains a strong option though, rallying with some force this morning to test the 0.7250 level for the first time this week.
The USD/CHF is making some gains however as markets shun the need for safe havens.
Yen pairs are on the rise, with the USD/JPY set to test the 113.50 level. Other EUR/JPY is gaining for the second straight day, while the AUD/JPY is making outsized gains.
Coming up today
Today at 08.30, we have the SNB monetary policy assessment, with the Libor rate at the same time. The press conference follows at 09.00.
At 12.45 we have the main European refinancing rate, with press conference at 13.30.
Trade Idea
The pound is stronger this morning, but risks still remain, especially against the week’s power currency the Australian dollar.
Morning Report: 07.00 London
The British pound is at least stable after a recovery rally yesterday on the back of May’s confidence vote victory. While this offered some small relief for sterling, the pound remains close the lows for the year. The parliamentary vote still needs to be overcome, with the prospect of a ‘no deal’ still on the cards.
The GBP/USD is unchanged this morning, with the EUR/GBP following suit after falling back from the highs yesterday. The GBP/JPY is more positive, making minor gains which build on yesterday’s rally.
The pound’s recovery is helping to fuel a general exit from the US dollar, with the dollar index falling back this morning from the highs.
The EUR/USD is unchanged after making gains yesterday in line with general dollar weakness. The AUD/USD remains a strong option though, rallying with some force this morning to test the 0.7250 level for the first time this week.
The USD/CHF is making some gains however as markets shun the need for safe havens.
Yen pairs are on the rise, with the USD/JPY set to test the 113.50 level. Other EUR/JPY is gaining for the second straight day, while the AUD/JPY is making outsized gains.
Coming up today
Today at 08.30, we have the SNB monetary policy assessment, with the Libor rate at the same time. The press conference follows at 09.00.
At 12.45 we have the main European refinancing rate, with press conference at 13.30.
Trade Idea
The pound is stronger this morning, but risks still remain, especially against the week’s power currency the Australian dollar.
The GBP/AUD has further downside risks and a good way to play this is a LOWER trade predicting that the pair will close below 1.7400 in 14 days for a potential return of 116%.
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