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Back Above $1.3400 on Fresh Brexit Deal Hopes.

GBP
MNI (London)
  • EU Barnier comments Wednesday that hurdles remain in Brexit trade negotiations knock the pound, took GBP/USD off its retested high of $1.3441 to $1.3288 in early NY, whilst EUR/GBP broke outside of its 1.0% 10-dma envelope (current topside Gbp0.9045), and holds outside in Asia.
  • GBP/USD recovered into the 1600GMT fix to $1.3346 and continued to rise through the NY afternoon to $1.3374 in risk driven trade(US fiscal agreement hopes).
  • Rate marked a low in early Asia at $1.3354 before it lifted back above $1.3400 in Europe on renewed optimistic hopes for a Brexit deal. Rate touches $1.3404, just shy off its 76.4% retrace of Wednesday's fall from $1.3441-1.3288 at $1.3405. Break exposes $1.3441.
  • BBC reported one ambassador suggesting a deal could be done by Friday, other sources also suggesting that it is a possibility, though warn pitfalls remain.
  • Brexit headlines remain the key driver of GBP pairs.
  • UK Final Services PMI at 0930GMT provides main domestic data interest(flash 45.8). BOE Saunders speaks at 0930GMT.
  • US Weekly Jobless Claims at 1330GMT ahead of Friday NFP. US Services PMI and ISM at 1145/1500GMT respectively.
  • MNI Techs: GBPUSD was unable to hold above 1.3400 Wednesday. The break above recent highs however reinforces the current bullish theme and opens 1.3482, Sep 1 high. A break of 1.3482 would confirm a resumption of the broader uptrend that started in March. Note, on monthly charts, a multi-year trendline resistance drawn off the Nov 2007 high intersects at 1.3372 . A convincing break during December would point to a reversal. Support is at 1.3289/88.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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