Jan 16th 2019: Pound Rallies on Hopes for Softer Brexit
January 16, 2019 9:11 amVideo
Latest News
- Video market update for April 23, 2024 April 23, 2024
- Trading Signals for EUR/USD for April 23-25, 2024: buy above 1.0681 (21 SMA – 3/8 Murray) April 23, 2024
- Analysis for the EUR/USD pair on April 23rd. Euro currency prepares for another decline April 23, 2024
- Analysis for the GBP/USD pair on April 23rd. Sellers failed to take the mark of 1.2313 on the first attempt April 23, 2024
- Technical Analysis – AUDUSD gears up after disappointing US PMIs April 23, 2024
- Technical Analysis – Meta stock falls below 50-SMA ahead of earnings April 23, 2024
- USD/JPY: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- GBP/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Technical Analysis – USDJPY fights with new 34-year high April 23, 2024
- EUR/USD: Simple trading tips for novice traders on April 23rd (US session) April 23, 2024
- Alphabet Q1 Earnings: Strong ad business but AI initiatives lag – Stock Markets April 23, 2024
- GBP/USD: trading plan for the US session on April 23rd (analysis of morning deals). The pound continues to decline April 23, 2024
- EUR/USD: trading plan for the US session on April 23rd (analysis of morning deals). The euro has shown rapid growth April 23, 2024
- EUR/USD. April 23rd. Bulls and bears are in balance April 23, 2024
- GBP/USD. April 23rd. The bears continue to attack April 23, 2024
- Gold edges lower as Middle East tensions ease April 23, 2024
- Slightly lower volatility across the board ahead of key US data – Volatility Watch April 23, 2024
- Technical Analysis – UK 100 index hits new all-time highs but rally may be cooling April 23, 2024
- XM Teams up with ‘Charity Right’ for Change April 23, 2024
- Technical Analysis – US 500 index rebounds off 2-month low below 5,000 April 23, 2024
Morning Report: 07.00 London
It has been a volatile 24 hours for the British pound, with the last night’s Brexit vote culminating in a larger defeat than expected for Theresa May’s proposal and the prospect of a no confidence vote. Markets have taken a positive interpretation on this, that the government will have to take a more inclusive line and a softer Brexit that integrates closer with the EU.
The EUR/GBP dropped heavily yesterday and is holding those losses this morning as the strong pound outperformed a weak euro which is being weighed down by German growth concerns. The GBP/JPY endured a volatile session, but ultimately closed higher, with small losses this morning. There have been similar moves on the GBP/USD with small losses this morning following yesterday’s wide-ranging session that saw a dip below 1.2700.
The dollar index recovered off the lows yesterday amid Brexit volatility morning, with no significant change so far this morning.
The EUR/USD continues to struggle though, dropping to test support levels around 1.1400. The AUD/USD is unchanged and keeping up its tight gains.
The USD/CHF continues to recover, with a second day of gains on the cards so far this morning, with 0.9900 the next test. The USD/CAD is heading in the opposite direction though as traders bet on higher Canadian rates.
Yen pairs are mixed, with small losses for the USD/JPY so far today and follow on selling for the EUR/ JPY. The AUD/JPY is unchanged so far.
Coming up today
A no confidence vote in Theresa May is potentially taking place today at some point.
BOE governor Carney speaks at 09.15.
At 09.30, we have UK CPI, RPI and PPI.
Trade Idea
The yen has been mixed this week, but the euro is showing increasing signs of weakness, centred around concerns for German growth.
There could be further downside for the EUR/JPY as this continues, with the flash crash lows a reasonable target.
A good way to play this is a LOWER trade predicting that the EUR/JPY will close below 123.00 within 14 days for a potential return of 175%.
Related Posts: