Straticator
MetaTrader 4
Vertex FX 10

Abshire-Smith currency update

EURUSD - Current Price $1.0622 (-$0.0027)

EURUSD is nursing modest losses ahead of the European cash equity market open amid broad risk aversion in financial markets. This follows a report in the Sunday Times over the weekend that UK PM Theresa May will signal she is prepared to leave the single market in a speech tomorrow. The pair reached a low of $1.0593 in Asia although swiftly reclaimed the $1.06 handle. Looking ahead, Italian CPI and Euro Zone trade data make up the data slate while we may also hear from ECB’s Villeroy and Mersch this morning. From a technical view, the overnight high at $1.0636 may offer some resistance ahead of Friday’s high at $1.0673 and Thursday’s high at $1.0685. On the downside, the overnight low at $1.0593 and Thursday’s low at $1.0572 are in focus

GBPUSD - Current Price $1.2031 (-$0.0137)

GBPUSD plunged to a three-month low of $1.1986 overnight, almost 200 pips below Friday’s close as Sterling tumbled across the board on ‘hard Brexit’ concerns. This followed a report in the Sunday Times over the weekend that suggested UK PM Theresa May will signal tomorrow that she is willing to leave the single market and customs union in exchange for control of its borders. Brexit chatter will remain the focus this morning with no UK data on tap while BoE Governor Carney is due to speak later today. From a technical view, the overnight low at $1.1986 forms our first support level ahead of the post-Brexit low at $1.1841. On the upside, the overnight high at $1.2065 and Friday’s low at $1.2122 may offer some resistance.

USDJPY - Current Price ¥114.44 (-¥0.39)

USDJPY slipped to a seven-week low overnight of ¥113.63, tracking heavy losses in Gbp/Jpy as ‘hard-Brexit’ concerns resurface. Lower US yields will also have likely weighed on the US Dollar amid broad risk aversion in financial markets this morning. Comments from BoJ Governor Kuroda that they remain ready to adjust policy were largely ignored, as were Japanese machine orders and PPI figures. From a technical view, the overnight low at ¥113.63 may provide some support ahead of the December 8th low at ¥113.13. On the upside, Friday’s high at ¥115.45 and last Wednesday’s high at ¥116.87 may provide resistance.

EURGBP - Current Price 0.88204 (-€0.0106)

EURGBP soared to a ten-week high of €1.1297 overnight, some 150 pips below Friday’s close as Sterling tumbled across the board on ‘hard Brexit’ concerns. This followed a report in the Sunday Times over the weekend that suggested UK PM Theresa May will signal tomorrow that she is willing to leave the single market and customs union in exchange for control of its borders. Brexit chatter will remain the focus this morning with no UK data on tap although we do have Italian CPI and Euro Zone trade data. Comments from ECB’s Villeroy and Mersch will also be closely watched ahead of BoE Governor Carney later today. The overnight low at €1.1297 is our first support level ahead of the November 8th high at €1.1256. On the upside, Friday’s low at €1.1405 and high at €1.1502 are in focus.

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