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  • Writer's pictureMike Paterson

Brexit back on the front page but risk sentiment improves again

Wednesday 9 January 2019

Equity markets are firming again this morning and that's brought some more improvement in risk appetite and that means Yen sellers are having their say again. These markets remain fickle though and the jury remains constantly out with Brexit also back on the front page as parliament begin their latest debate which,in theory, culminates in a vote on May's proposals next Tuesday.

GBPUSD has been down to 1.2707 after last night's government defeat in the House of Commons which indirectly makes a No Deal Brexit outcome that much more difficult ((so a double edged sword in GBP terms) but has rallied back to 1.12764 this morning helped by GBPJPY demand again.EURGBP held the 0.8950 support area again  and been back up above 0.9007 (GBPEUR down to 1.1102) before sellers prevailed again as GBP catches another bid. I remain GBP bearish overall and happy to jump on rallies.

EURUSD continues to range tightly too in a band of 1.1430-1.1500 while USDJPY had a dip to 108.46 yesterday but has rallied back to test 109.00 on the renewed Yen selling.USDCHF is also tightly bound in a range of 0.9780-0.9830 for the moment and still finding some degree of support from EURCHF dip demand above 1.1200 with the SNB ever-watchful.

AUDUSD continues to look underpinned helped by AUDJPY demand and the gold price steadying but still has sellers poised while USDCAD has retreated again, this time from 1.3320 to 1.3225 as oil prices firm and CADJPY buyers return. Today the BOC announce their latest interest rate decision with no change widely expected but a couple of 2019 hikes in the mix too.

Fickle Forex markets ever prevailing so be ready with your entry/exit levels and orders as always.

Have a good day out there one and all.

Interbank Rate 08.16 GMT GBPUSD   1.2740 EURUSD   1.1463 EURGBP   0.8994 GBPEUR   1.1116 GBPAUD   1.7830 GBPCAD   1.6897 GBPHKD   9.8773 USDJPY   108.85 EURJPY   124.80 GBPJPY   139.75 AUDUSD   0.7156 EURCHF   1.1240 USDCAD   1.3247 USDCHF   0.9805 EURHKD   8.8857

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