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Writer's pictureMike Paterson

Pound under pressure as MPs prepare to vote yet again

Friday 29 March 2019

It's March 29th the day when the UK was due to Leave the EU but instead we have another vote as May once again brings her deal back to parliament but this time split in two. Today's vote is legally binding but will only deal with the divorce terms not the future relationship.


I haven't the time to spell out all the scenarios but the BBC has a good overview here https://www.bbc.co.uk/news/uk-politics-47742395


GBPUSD has understandably come under renewed pressure amid all the uncertainty and pushed down further by the usual BUBA month-end demand. This morning has seen a push down to test the strong demand/support at 1.3000 that I've mentioned all week and rebounded quickly to test pivotal resistance now between 1.3050-60. Today's vote is unlikely to add any comfort with May expected to lose yet again but it could be closer than before.


EURGBP has posted highs of 0.8630 (GBPEUR down to 1.1587) on a combination of the softer Pound and the usual month-end BUBA demand.I remain GBP bearish overall and continue to rally-sell as my preferred strategy and buy back in the dips. I do not ever go long GBP as I see risk to the downside still and that is currently playing out yet again but I continue to see good two-way business as the Brexit chaos takes fresh twists and turns.


EURUSD remains under pressure as I've been warning and now broken down through 1.1230 but with the Euro's usual dip-demand prevailing for the moment along with a mixed bag of EUR-cross plays. Good size support next at 1.1200 with large option expiries there today.Some month-end USDJPY demand has seen the pair up to 110.93 but we've seen demand at 110.50 which now appears pivotal.


USDCHF has found itself underpinned still but tightly bound as EURUSD remains pressured but tempered by EURCHF falls albeit with dip demand as the SNB remain ever-watchful. AUDUSD has found itself ranging again and the jury remains out as we end another week while USDCAD also continues to range, and after failing to hold below 1.3400 but also above 1.3450 we've been back down to 1.3420.


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


Tomorrow the struggling Shrimpers of Southend return to the hallowed Hall in a desperate bid to grab a point or hopefully three with caretaker-manager Ricky Duncan in charge. Support will be there from fans equally desperate for us to avoid the drop. Come on you mighty Shrimpers.


Have a good day and week-end out there one and all.


Interbank Rate 08.40 GMT

GBPUSD   1.3030

EURUSD   1.1225

EURGBP   0.8624

GBPEUR   1.1595

GBPAUD   1.8371

GBPCAD   1.7482

GBPZAR   18.9185

GBPHKD   10.1022

USDJPY   110.81

USDZAR   14.5200

EURJPY   124.36

GBPJPY   144.32

AUDUSD   0.7090

EURCHF   1.1175

EURHKD   8.7125

USDCAD   1.3423

USDCHF   0.9956


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