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Pound Turns On New Estimates11 September 2018 by Dave Evans

Morning Report: 07.00 London

The British pound remains strong after turning on the latest words from Michel Barnier that gave hope of a Brexit deal by November. It continues to be clear where the balance of power lies with the pound leaping yesterday on the positive ascent from the EU side. The GBP/JPY is up 1.3% on the week, with the GBP/USD up 0.95%. The EUR/GBP has also continued to slide, breaching the 0.8900 support level this morning.

It’s not just the pound enjoying a good week against the dollar and yen though as the dollar index retreats for the second straight day this morning and the Japanese yen falls out of favour as risk appetite returns.

The AUD/USD is rising off 26 month lows, as the AUD/JPY is posting on of its best days of September so far.

The euro may be lagging the pound, but the EUR/USD and EUR/JPY are still making strong gains and building on yesterday’s promise. The EUR/CHF is higher again this morning as money switch out of the safe haven Swiss Franc.

The USD/JPY is higher for the third straight day as the yen gives way to the dollar in the safe haven stakes. The USD/CHF is slightly lower this morning though.

Coming up today

Today, we have UK average earnings index at 09.30, released alongside claimant count change and unemployment rate.

German ZEW economic sentiment is at 10.00.

Trade Idea

There was evidently false hope for the Canadian dollar ahead of trade talks, as the USD/CAD rallied to test resistance around 1.3200. Trump is predictably unpredictable though and there are encouraging noises that a deal will be done sooner rather than later.

It’s worth betting that the 1.3200 will hold, making lower levels a good target.

September 11th, 2018: Pound Turns On New Estimates

A good way to play this is a ONE TOUCH trade predicting that the USD/CAD will touch 1.2950 within 14 days for a potential return of 159%.

September 11th, 2018: Pound Turns On New Estimates