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Daily Report

Pound Steady as May Survives17 January 2019 by Dave Evans

Morning Report: 07.00 London

The British pound remains steady and in line with other pairs after Theresa May survived yesterday’s no confidence vote. The pound outperformed other currencies yesterday, particularly the euro which is lagging on growth concerns. The EUR/GBP dropped below 0.8850 for the first time since December and is holding those losses this morning. The GBP/USD made small gains in volatile trading which are being unwound this morning so far. Wednesday’s advance on the GBP/JPY is also being unwound in the early hours.

Across dollar pairs, the EUR/USD is lower for the third straight day and posting its sixth losing day out of seven. The AUD/USD was hit hard yesterday, suffering some of the largest falls, with follow on selling this morning.

The USD/CAD is pushing higher, while the USD/CHF continues to recover from the lows around 0.9700 to test 0.9900 this morning.

Yen pairs are generally on the decline, with the USD/JPY struggling with resistance at 109.00. The EUR/JPY is also testing a key line, resting just above the 124.00 support line.

Coming up today

Today we have US Philly Fed Manufacturing Index at 13.30.

FOMC member Quarles speaks at 15.45.

Trade Idea

The euro continues to struggle against the pound and there could be further downside in coming weeks.

Pound Steady as May Survives

A good way to play this is a LOWER trade predicting that the EUR/GBP closes below 0.8800 in 14 days for a potential return of 128%.

Pound Steady as May Survives