The calm before the Brexit storm

Russell Sandiford Reiwa-Capital.com

The FX majors have been incredibly quiet in the Asian trading session ahead of the pivotal Brexit meetings.

The mixed messages coming from the US/China trade status keeps the risk sentiment lingering, with respect to the sensitive HK issue popping its head up again today.

It is bizarre timing for the US to push this highly controversial HK issue to the front of the table during key trade negotiations between the US & China trade delegations.

Nevertheless, markets are already on edge ahead of what could be make or break for the GBP around Brexit.

Seeing that GBPJPY remains Bid around 138.80, a similar level to the start of the Asian trading session, keeps Brexit hopefuls optimistic.

Should we be buying GBP from here?

GBP/USD ahead of Brexit Armageddon, UK CPI & US Retail Sales

Let’s not make assumptions that Boris Johnson’s Brexit plans will flop – we may very much come into a large & sharp GBP rally seeing GBPUSD above 1.3200 and closer to 1.3250 if the pathway appears cleared for a last-minute approval at the EU council meeting on Thursday.

Watch this space and be nimble, high volatility lays ahead because nothing is a cemented done deal.

The Fed speakers left some mixed messaging with respect to the Fed forward guidance in the past 24-hours, so US retails sales could have a muted impact on GBPUSD as Brexit overshadows everything presently.

Author

Russell Sandiford

Reiwa-Capital.com

Russell Sandiford is one of the most reputable market analysts in Australia with over 16 years’ experience in the global FX, indices and commodities markets.

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