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Muted Gains for pound after Brexit Delay Deal11 April 2019 by Dave Evans

Morning Report: 07.00 London

There were muted gains for the British pound yesterday despite agreement to extend Brexit again. Traders are wary of delay fatigue and the cost it appears to exact each time. The GBP/USD rose to 1.131 and is up 0.53% on the week, with small buying interest this morning. The EUR/GBP is unchanged after reversing in the favour of the pound yesterday. Support is holding at 0.86000 though. The GBP/JPY is making gains for the second straight day.

By contrast, the EUR/USD continues to climb, posting gains for its fourth straight day after a volatile post ECB session yesterday. The biggest gains have come on the EUR/CHF which jumped above 1.1300 yesterday as interest in the Swissy sours.

The AUD/USD is down slightly after posting large gains yesterday that pushed the pair above the 0.7160 level.

The USD/CAD is making gains this morning, while the USD/CHF is reversing after pushing significantly through the 1.0000 to 1.0020.

The USD/JPY is making small gains above the 111.0 level as support holds. The EUR/JPY remains rangebound however, while the AUD/JPY nears the top of its 2019 range.

Coming up today

Today, we have US PPI and unemployment claims at 12.30.

FOMC members Clarida, Williams and Bullard speak at 13.30, 13.35, and 13.40 respectively.

BOC governing council member Wilkins speaks at 17.00.

FOMC member Bowman speaks at 20.00.

Trade Idea

The Swiss franc is falling out of favour, while the euro is enjoying buying interest. There is still room for further gains past the 1.1350 level though.

Muted Gains for pound after Brexit Delay Deal

A good way to play this is a HIGHER trade predicting that the EUR/CHF will close above 1.1350 in 14 days could return 183% if successful.

Muted Gains for pound after Brexit Delay Deal