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Writer's pictureMike Paterson

Wobbly risk sentiment again and the Brexit debacle continues

Thursday 28 March 2019

I've been warning for a while now that it's all very fragile out there still and we've seen risk-off sentiment return as equities and bond yields fall again amid the global uncertainty. Meanwhile Brexit continues to grab the headlines with the indicative votes from MPs being a complete waste of time and May said she would stand down if her Withdrawal Agreement was passed, producing turncoats a-plenty but not the DUP who remain (sic) critical to the exit/no exit process.


GBPUSD has been trading up n down wonderfully again and extended to 1.3130-1.3270 amid the latest uncertainty.EURGBP has tested support at 0.8480-85 (GBPEUR resistance at 1.1785) but a combination of the usual month-end demand and GBP selling has produced a decent rally now to 0.8558 (GBPEUR down to 1.1685).


I remain GBP bearish overall and continue to rally-sell as my preferred strategy. I see risk to the downside still 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 but continues to hold 1.1230 with the Euro's usual dip-demand prevailing for the moment. Softer risk sentiment has helped the Yen generally and USDJPY has been down to test to 110.00 after a hold around 110.30 yesterday only managed to rally as far as 110.50


USDCHF has found itself underpinned still as EURUSD falls but tempered by EURCHF falls albeit with dip demand as the SNB remain ever-watchful. AUDUSD has found itself ranging still with AUDJPY selling notable and helping to cap but equally some dip demand still lurking given we tested 0.7150 earlier this week.


USDCAD also continues to range and after failing above 1.3430 we've been back down to 1.3400.

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


So Southend have now finally sacked the manager Chris Powell and it's a sad ending for a club legend but somehow inevitable. Let's hope the decision saves our season at least.


Have a good day out there one and all.


Interbank Rate 07.55 GMT

GBPUSD   1.3167

EURUSD   1.1240

EURGBP   0.8535

GBPEUR   1.1714

GBPAUD   1.8556

GBPCAD   1.7665

GBPZAR   19.2385

GBPHKD   10.1797

USDJPY   110.03

USDZAR   14.6302

EURJPY   123.67

GBPJPY   144.87

AUDUSD   0.7093

EURCHF   1.1188

EURHKD   8.6902

USDCAD   1.3421

USDCHF   0.9955


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