• Brexit concerns send the Pound plummeting but dip buyers poised too

    A wobbly start to the month for Pound pairs as the latest Brexit reality check saw a large (by recent standards) move lower and again this morning. Seems the UK and EU are at a trade talk impasse from the off but understandably these are the first warning shots and some degree of peacock-suiting should be expected.

    Regular readers will know that I have been warning of such problems for a long while and yesterday's move will have been exacerbated by Friday's move higher on those month-end USD sales and short-term traders subsequently having to lob out long GBP positions.

    Elsewhere in the uber-fickle world of FX we've seen some risk sentiment return as China's markets lead the way in making a recovery even though the coronavirus continues to create concerns. If a week is a long time in politics then a day is even longer in FX. I expect risk sentiment to remain fragile overall though.

    GBPUSD has this morning posted lows of 1.2942 after holding 1.3025-30 on its last rally, a level I highlighted in a Tweet yesterday but since testing 1.3000 again as I type after some better PMI data and EURGBP selling.EURGBP marched higher to post 0.8538 amid the general Pound supply but since retreated tempered by some GBPJPY demand this morning on the better risk. GBPJPY has been down to look at 141.00 amid the GBP retreat but since bounced as better risk sentiment prevails.

    I stay poised to sell GBP rallies and buy back in the dips as ever.Still ranging overall. Rinse n repeat.

    EURUSD remains tightly bound amid the cross currency plays and option expiries. USDJPY retreated to look at 108.50 again but since posted 109.11 as risk sentiment improves. BOJ's Kuroda spouting on about easing again but we know that's all hot air. EURJPY also retreated but has since picked up a risk-on bid to post 120.68 having held 120.00.USDCHF has found support at 0.9650 helped by EURCHF demand too amid the better risk. and with the SNB still ever vigilant.

    AUDUSD has rallied well to post 0.6732 after holding 0.6680 again with the RBA keeping rates on hold but still cautious so sellers won't be disappearing any time soon. USDCAD rallied further on softer oil prices but has failed to hold above 1.3300 with some CADJPY returning and helping to cap.

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

    Have a good day out there one and all.

    Twitter: @MSPFX and @MikePatersonFX

    Interbank rates: 08.27 GMT

    GBPUSD 1.2968

    EURUSD 1.1048

    EURGBP 0.8527

    GBPEUR 1.1733

    GBPAUD 1.9279

    GBPCAD 1.7220

    GBPJPY 141.45

    GBPZAR 19.1997

    GBPHKD 10.0543

    USDJPY 108.98

    USDZAR 14.7497

    EURJPY 120.55

    EURCHF 1.0711

    EURHKD 8.5691

    AUDUSD 0.6732

    USDCAD 1.3273

    USDCHF 0.9688

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