Daily Report October 15th 2018: Pound Wobbles on Brexit Stalemate

Morning Report: 07.00 London

The British pound is under pressure as the weekend’s Brexit talks reached a stalemate, potentially scuppering the prospect of an orderly transition. The GBP/JPY has dropped below its monthly long trading range. The GBP/USD happed lower, with 1.3100 holding as support for now. The EUR/GBP jumped higher, building on the last two days of gains.

The euro itself is hardly a bastion of stability, opening with a weaker position this morning. The EUR/JPY is also continuing its downwards slide, while the EUR/CHF has gapped lower from the highs.

The dollar is generally mixed, with the AUD/USD continuing Friday’s weakness. The USD/CAD is making moderate gains in line with October’s general strength. The USD/CHF is lower though as the Swiss franc recovers ground.

The USD/JPY continues to weaken, with the yen holding the October gains.

Coming up today

At 13.30, we have US retail sales.

BOC business outlook survey follows at 15.30.

Trade Idea

The pound is weaker this morning, but the general tone of the Brexit talks appears to be tentative disappointment rather than disaster. Brinkmanship and last minute deals are the hallmark of EU negotiations, so there may still be some hope.

October 15th 2018: Pound Wobbles on Brexit Stalemate

A good way to play this is a LOWER trade predicting that the EUR/GBP close below 0.8750 within 14 days for a potential return of 160%.

October 15th 2018: Pound Wobbles on Brexit Stalemate

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Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com. Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.

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