MARKET DEVELOPMENT – GBPUSD Gains on Brexit Delay, USDJPY Rejects 200DMA
GBP: The Pound is the notable outperformer this morning, hitting a 19-week high above 1.32, which saw EURGBP edge towards the lowest level since May 2017 as no-deal Brexit risks recede. Overnight, reports had emerged that PM May had been considering a potential delay to the Brexit date, while the Labour party noted that they would back a 2nd referendum. As such, this continues to hint that the risk of a no-deal has continued to decrease.
Brexit votes announced by PM May
- Mar 12th: 2nd meaningful vote
- Mar 13th: Vote on No-deal if MV fails
- Mar 14th: Vote on Article 50 extension if both votes fail
JPY: Marginal gains this morning with JPY crosses edging lower. Alongside this, USDJPY failed to maintain a foothold above the 111.00 handle having rejected the 200DMA, however, ranges remain relatively tight ahead of Fed Chair Powell’s testimony.
AUD: A slight pullback in the Aussie throughout the European session, following yesterday’s trade war optimism inspired gains. Having failed to make a test of the 0.72 handle, AUDUSD hovers around 0.7150 with AUDNZD back below 1.04 as iron ore prices come under selling pressure.
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
