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Pound Gains on No Deal Vote14 March 2019 by Dave Evans

Morning Report: 07.00 London

The British pound is sitting just below the 1.3300 level after rallying sharply on the passing on the non-biding ‘no deal’ vote yesterday. The GBP/USD has slipped just below this level through the morning, but there’s no denying that the pound’s current volatility has a positive edge. The GBP/JPY continues to perform well, holding at the highs around 148.00. The EUR/GBP is holding near the lows just above support at 0.8500.

Other dollar pairs are on the back foot this morning, as the dollar index makes gains as risk appetite rises.

The EUR/USD is experiencing more severe selling pressure, erasing around a third of yesterday’s gains to end four straight days of rallies. The EUR/JPY continues to perform well though, rallying for the fourth straight day.

The AUD/USD is on the back foot, erasing all of yesterday’s gains on China slowdown fears with industrial production coming in below estimates.

The USD/CAD is holding above 1.3300 and making gains after four days of losses. The USD/CHF sold off heavily yesterday and is trading below 1.0050 despite small gains this morning.

The USD/JPY is keeping its longer term up trend on track, with its biggest rally since March the first.

Gold is reversing yesterday’s rally entirely as dollar strength returns.

Coming up today

The UK parliament is facing a free vote on Brexit today.

There are no other middle or upper tier economic items.

Trade Idea

This morning, the AUD/USD is on the back foot and feeling the impact of China’s slowdown. This combined with the dollar’s return to strength could mean further downside for the AUD/USD.

Pound Gains on No Deal Vote

A good way to play this is a LOWER trade predicting that the AUD/USD will close below 0.7050 in 14 days for a potential return of 117%.

Pound Gains on No Deal Vote