GBPUSD & GBPJPY, H1
With 5 weeks until the UK is scheduled to leave the EU, Brexit news remains front and centre for Sterling traders. A flurry of news and gossip regarding further political resignations and defections continues to to undermine Her Majesty’s currency today.
It started positively, with the Irish Foreign Minister (Simon Coveney) saying the EU were working with UK to give “reassurances” on the backstop and that no Deal was a “lose, lose, lose”¹. The comments helped Cable post a day high at 1.3050, however, the news flow since has weighed on the pound, pushing Cable to a low below the 200 EMA at 1.2967 (T2 from the break of the 20 MA yesterday at 20:00).
GBPJPY meanwhile, has fallen from a high of 144.50 at the daily pivot point, through S1 at 144.00 to 143.80 (9 pips above T2 at 143.71). The drive lower has been, another MP resigning from the main opposition Labour Party², rumours of further resignations from Labour and the governing Conservative Party and that there will be no Brexit “Deal in the Desert” when Mrs May and other EU leaders at a summit with Arab leaders this weekend³.
¹https://www.irishtimes.com/news/politics/no-deal-brexit-is-a-lose-lose-lose-says-coveney-1.3802735
²https://www.bbc.com/news/uk-politics-47330079
Stuart Cowell
Head Market Analyst
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