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Pound Struggles on Brexit Uncertainty05 June 2018 by Dave Evans

Morning Report: 07.00 London

The British pound is recovering after under-performing yesterday as Theresa May delays her Brexit white paper. The GBP/USD continues to sink back towards the May lows, while the EUR/GBP pumped up to the EUR/GBP level yesterday. This weakness comes despite strong UK construction data yesterday.

Dollar pairs are generally on the back foot, with the EUR/USD on the back foot after gains yesterday.

The Australian dollar is one of the worst performing currencies so far today though after the RBA opted to keep rates on hold. This comes after sizeable gains yesterday.

The yen pairs are following the same trend, with the AUD/JPY a leading loser after hefty gains yesterday that brought the pair close to the May highs.

Coming up today

At 09.30, we have UK services PMI.

MPC member Cunliffe speaks at 11.00.

Canadian Labor productivity follows at 13.30.

US ISM non-manufacturing PMI is at 15.00.

Trade Idea

Gold continues to struggle as the US dollar holds at the highs. $1290 is acting as support.

June 5th, 2018: Pound Struggles on Brexit Uncertainty

There could be more downside from here and a good way to play this is a ONE TOUCH trade predicting that gold will touch $1270 within the next 14 days for a potential return of 117%.

June 5th, 2018: Pound Struggles on Brexit Uncertainty