Pound Hit By Brexit Nerves12 November 2018 by Dave Evans
Morning Report: 07.00 London
This morning, the ebbs and flows of Brexit confidence continue to weigh on the pound following the resignation of Jo Johnson from the cabinet over concerns about the government’s plans. Sterling has gapped lower across the board. The GBP/JPY slumped heavily on Friday with further selling this morning bringing the pair down to test the 147.00 level. The GBP/USD selling is more severe, with the pair well on its way to erasing the November 1st rally. Even the beleaguered euro is making gains against the pound, with the EUR/ GBP rally for the second day in a row.
The dollar index is resurgent following US mid-terms, with losses across the board for dollar pairs. The EUR/USD is testing the lows at 1.1300, marking four days of selling. The AUD/USD is also struggling for the third straight day.
The USD/CHF continues to head back to the highs, after the parity line held last week.
The USD/CAD is one exception, gapping lower on Canadian dollar strength on reports that Saudi Arabia will cut production.
The USD/JPY has continued to make gains and is holding above the 114.00 level. Other yen pairs are mixed, with the GBP/JPY gapping lower, along with the EUR/JPY, while the AUD/JPY gapping higher.
Coming up today
It is a light day on the economic calendar, with public holidays for the US and Canadian dollar.
Trade Idea
The GBP/JPY is starting on its latest down swing and there could be further down side from here.
