Sterling Extends Rally on Brexit Hopes18 January 2019 by Dave Evans
Morning Report: 07.00 London
Markets are quiet this morning as traders pause for breath following yesterday’s moves. The British pound remains in a strong position, with the GBP/USD sitting just below 1.3000 following Thursday’s sizeable rally. The GBP/JPY is higher for the fifth day out of six, while the EUR/GBP continues to slump after euro gave serious ground to the pound yesterday to break through 0.8800 for the first time in 2019.
Away from the pound, dollar pairs are mixed, with the EUR/USD continuing to struggle and sitting below 1.1400. The AUD/USD is unchanged so far after testing the 0.7200 for the last six sessions.
The USD/CAD is on the back foot, as yesterday’s recovery rally stalled at 1.3300.
Meanwhile, the USD/CHF made another recovery rally yesterday, falling just short of pushing through the 0.9950 level yesterday.
The USD/JPY continues to make gains on the week, with the AUD/JPY also following suit and even the lagging EUR/JPY making gains.
Coming up today
Coming up today, we have UK retail sales at 09.30.
Canadian CPI is released at 13.30.
FOMC member Williams speaks at 14.05.
Preliminary UoM Consumer Sentiment is at 15.00.
The USD/JPY continues to perform well this week with the 2019 opening gap around 110.00 a likely target before heading for higher levels.