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Daily Report

Sterling’s Struggle17 May 2019 by Dave Evans

Morning Report: 07.00 London

This morning, the British pound remains weak as Brexit fears and a leadership change spook markets. The GBP/USD sunk through support yesterday and this momentum is continuing this morning. The GBP/JPY continues to struggle, while the EUR/GBP continues to climb.

The US dollar index remains strong and is poised to challenge the 2019 highs. Consequently dollar pairs are on the back foot, with the AUD/USD struggling and the EUR/USD rangebound.

The US dollar and Swiss franc have been cancelling each other out this week, but the momentum is swinging the franc’s way this morning.

Yen pairs are on the back foot with the AUD/JPY extending its losing run and the EUR/JPY struggling.

Coming up today

At 14.00, we have preliminary UoM Consumer Sentiment.

FOMC member Clarida speaks at 17.40.

Trade Idea

With the pound continuing to struggle and the yen in demand, there could be further downside for the GBP/JPY.

Sterling’s Struggle

A good way to play this is a LOWER trade predicting that the GBP/JPY will close below 139.00 in 14 days for a potential return of 207%.

Sterling’s Struggle