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April 17th, 2018: Pound Hits Highest Level Since Brexit

Morning Report: 07.00 London

This morning, the British pound remains firm, with the GBP/USD climbing to its highest level since the shock of Brexit saw levels plunge. Hopes of a strong transition deal and upbeat expectations for UK average earnings and unemployment claims have helped the pound to push higher. The GBP/JPY has continued to climb, while the EUR/GBP is falling again, reaching its lowest levels since last May.

The dollar index is recovering some of yesterday’s losses, but the damage was done by heavy selling yesterday. US Empire State Manufacturing Index plunged more than expected, while Trump inspired political uncertainties continue to haunt the dollar.

The AUD/USD is weak this morning after indifferent trading yesterday, while the NZD/USD is selling off, erasing yesterday’s losses.

The yen pairs are mixed, with a negative bias on most pairs, with the AUD/JPY one of the worse performers over the last 24 hours.

Coming up today

This morning, we have UK average earnings, claimant count change and unemployment rate at 09.30.

At 10.00, we have German ZEW economic sentiment.

At 13.30, we have US housing starts and building permits. Canadian foreign securities purchases and manufacturing sales are released at the same time.

We have US capacity utilisation rate, FOMC member Williams speaking and industrial production at 14.15.

FOMC member Quarles speaks at 15.00, with Bostic speaking at 22.40.

Trade Idea

This morning, the GBP/AUD is pushing higher, helped by the resurgent pound and an Aussie dollar that is struggling with the threat of China trade tariffs.

April 17th, 2018: Pound Hits Highest Level Since Brexit

A good way to play this is a HIGHER trade predicting that GBP/AUD will close above 1.8600 in 14 days for a potential return of 178%.

April 17th, 2018: Pound Hits Highest Level Since Brexit