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Pound Struggles on Brexit Impasse09 May 2019 by Dave Evans

Morning Report: 07.00 London

The British pound continues to struggle this morning, with the GBP/JPY sitting just above support at 143.00 after slumping below 144.00 yesterday. This comes as markets grow increasingly restless ahead of European elections. The GBP/USD is making small gains this morning, but this comes after three days of heaving selling. The 1.3000 level is holding for now. The pound is showing a little fight against the euro after the EUR/GBP pushed through the 0.8600 level yesterday.

Yen pairs generally are on the back foot as risk appetite takes hold in the context of China trade deal worries. The USD/JPY is slipping below 110.00 this morning. The EUR/JPY is slipping lower for its third straight day, while the AUD/JPY is slumping further below 77.00.

The Aussie is also struggling against the US dollar, with the AUD/USD set to test the May lows around 0.6975. The EUR/USD is unchanged but range bound.

Meanwhile the USD/CAD is setting for another attempt at the highs, trading just below support at 1.3500 this morning. The USD/CHF is slipping back though as the dollar gives way to other safe havens.

Coming up today

Today we have Canadian Trade balance at 12.30, released alongside PPI and Fed Chair Powell speaking.

Trade Idea

The AUD/JPY appears vulnerable and the current slump could extend further.

Pound Struggles on Brexit Impasse

A good way to play this is a LOWER trade predicting that the AUD/JPY will close below 76.00 in 15 days could return 183%.

Pound Struggles on Brexit Impasse