Sterling suffered on Friday from reports on Bloomberg that the UK finance minister (Philip Hammond) is ready to accept the fact that the UK may have to give up single-market membership in the European Union to achieve the immigration restrictions voters demanded in the Brexit vote. Cable closed the day and week down 1.8 percent and GBPJPY slumped from north of 135.00 to close under 133.00.
The slip in sterling has helped both our SHORT GBP trades reach Target 2 – GBYJPY (132.80) and GBPUSD (1.3070) for a net gain on both trades of over 600 pips.
Today the USD has traded softer and corrected some of its outperformance from Friday, Market conditions have been thin with Tokyo markets absent and with market participants largely on the sidelines ahead of the Fed and BoJ policy decisions this week. USDJPY ebbed back under 102.00, breached Friday’s low on route to a four-session low at 101.69. EURUSD traded in a narrow orbit of 1.1150. Cable recouped some of the sharp losses seen on Friday, lifting above 1.3080, well over half a big figure up on the day.
However, the close of the day and week below the psychological 1.3000 level is definitely one to watch. Next break lower would be the August low of 1.2860, the post Brexit low of 1.2780 and then 1.2500.
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.