GBP/USD long heading into Wednesdays trading session...
Prior chart:
The rationale for Sterling’s revival was almost as baffling as the factors behind its earlier weakness that saw Cable trip sub-1.3300 sell orders and Eur/Gbp rebound to within a whisker of 0.9150, but breaking headlines inferring that UK and EU negotiators are getting closer towards a trade pact have pushed the Pound up further from worst levels, predictably. Cable is retesting Monday’s peaks around 1.3450 and the cross is down through 0.9050 again as a BBC journalist reports that Tory MPs are getting wind of a Brexit deal that will appease the Eurosceptics and while nothing is confirmed the proof of the pudding will come from HoC leader JRM via formal notification that Parliament will sit on December 21 and 22. Prior to that, UK labour data was not as bad as forecast, and Brexit ‘remained’ in limbo amidst familiar conflicting views on the current status of trade negotiations as EU sources suggested that relative silence on the matter signalled some further progress and PM Johnson contended that no deal is still the most likely scenario. Separately, a German envoy held out the possibility of an agreement by the end of the week and Ireland’s Foreign Minister saw more movement that could culminate in a successful result, with the Irish PM expressing greater hopes of reaching an accord this week. Hence, the Pound retains an underlying bid, albeit not quite the optimism it had in early December or last Wednesday.
The rationale for Sterling’s revival was almost as baffling as the factors behind its earlier weakness that saw Cable trip sub-1.3300 sell orders and Eur/Gbp rebound to within a whisker of 0.9150, but breaking headlines inferring that UK and EU negotiators are getting closer towards a trade pact have pushed the Pound up further from worst levels, predictably. Cable is retesting Monday’s peaks around 1.3450 and the cross is down through 0.9050 again as a BBC journalist reports that Tory MPs are getting wind of a Brexit deal that will appease the Eurosceptics and while nothing is confirmed the proof of the pudding will come from HoC leader JRM via formal notification that Parliament will sit on December 21 and 22. Prior to that, UK labour data was not as bad as forecast, and Brexit ‘remained’ in limbo amidst familiar conflicting views on the current status of trade negotiations as EU sources suggested that relative silence on the matter signalled some further progress and PM Johnson contended that no deal is still the most likely scenario. Separately, a German envoy held out the possibility of an agreement by the end of the week and Ireland’s Foreign Minister saw more movement that could culminate in a successful result, with the Irish PM expressing greater hopes of reaching an accord this week. Hence, the Pound retains an underlying bid, albeit not quite the optimism it had in early December or last Wednesday.
