Sterling Stumbles at European Open

GBPJPY, H1                 

Sterling has come under particular pressure, posting losses against the euro and yen, in addition to the dollar. This follows the House of Commons rejection of a proposed amendment to the Brexit bill that would have forced the government to seek parliamentary approval in the event that the UK is forced to leave the EU without a new trade deal. This means that the government will be free to exit the EU on WTO terms in the event that no new trading terms have been agreed on at the end of the two-year negotiating period. There was also the confirmation overnight that the Scottish National Party plans a second Scottish independence referendum in late 2018 or early 2019. However, the SNP need the approval of the UK parliament before any referendum can be scheduled, something that at this point is unlikely.  The main patient in this rising uncertainty is the pound.

Cable has logged an eight-week low at 1.2123, while EURGBP has rallied back towards the eight-week high seen last week at 0.8787 and GBJPY broke the key 140.00 level and traded as low as 139.40.  The 1 hour GBPJPY chart shows a key level at 139.83 and a possible pivot low forming from those long lower wicks earlier one to watch with interest over the coming hours.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our latest webinar and get analysis and trading ideas combined with better understanding on how markets work.

Click HERE to register the next webinar will start in:

Stuart Cowell

Senior Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.