Free Trial

It has been a more muted Asia-Pacific.........>

CABLE: It has been a more muted Asia-Pacific session for the GBP crosses with
cable sticking to a 20 pip range thus far, last 10 pips or so softer at
- Cable's round trip was the highlight of Monday's session. Political wrangling
saw GBP modestly bid across the late Asia/early EU session, after dissenting
Brexit Min Davis resigned, which allowed the market to believe the passage of a
soft Brexit would be easier for PM May. This sentiment was short-lived, as
Foreign Sec Boris Johnson's resignation saw traders sell GBP/USD from $1.3363 to
$1.3190. The cross picked up later in the session after a bullish appearance
from the PM in front of Commons and clarification that Jacob Rees-Mogg (a front
runner for the Conservative leadership & hard Brexiteer) hadn't tabled a no
confidence vote in the PM and doesn't expect one. This allowed GBP/USD to turn
bid, and trade back to flat levels in late U.S. dealing.
- Support is noted at Monday's low ($1.3190), with resistance observed at
Monday's high/the 23.6% retracement of the $1.4377-1.3050 move ($1.3363).
- UK output/ONS monthly GDP data add to the political risk later today.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.