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Daily Report

Pound Gaps Lower03 September 2018 by Dave Evans

Morning Report: 07.00 London

The British pound is the main mover following Barnier’s rejection of May’s Chequers plans. This has sparked a near complete reversal of last weeks rally, with the pound gapping lower against all major currencies this morning. The GBP/JPY is the biggest loser, down by 0.51%.

Dollar pairs are performing well, with the AUD/USD and EUR/USD reversing two days of solid losses. The euro is out performing, with the EUR/GBP and EUR/CHF mounting a counter trend rally.

The Canadian dollar has weakened further though on fears of a trade deal failure with the US. The USD/CAD is higher again this morning.

Meanwhile, the USD/CHF is higher after weeks of safe haven interest.

Yen pairs are generally on the back foot as the yen exerts control. The GBP/JPY is leading the fallers, with the AUD/JPY making it three days of losses on poor retail sales data.

Coming up today

UK Manufacturing PMI is at 09.30.

Buba President Weidmann speaks at 18.15.

Trade Idea

Nothing hurts more than false hope. Last week’s Brexit rally following Barnier’s positive comments is starting to unwind against the harsh practical reality of negotiating positions.

The EUR/GBP is higher again this morning, but it is highly feasible that we’ll see the recent highs revisited soon.

September 3rd, 2018: Pound Gaps Lower

A good way to play this is a ONE TOUCH trade predicting that the EUR/GBP will touch 0.9100 within 14 days for a potential return of 121%.

September 3rd, 2018: Pound Gaps Lower