The British Pound makes a strong come back today and is trading as the strongest one at the time of writing. UK government released its long term Brexit economic analysis, showing that Prime Minister Theresa May's Brexit deal could bring as little as -0.1% drag in GDP in 15 years. Though, Sterling's rebound today is more due to lack of negative developments and technical, rather than the PM. Thanks to rebound in the stock markets, Australian Dollar is the second strongest one for today. Dollar is following as the third strongest but it could be vulnerable. Trump just renewed his personal attack on Fed chair Jay Powell and said he's "not even a little bit" happy with him. Powell's speech today will be closely watched for any responses, or change in tone. Meanwhile, Canadian Dollar is weakest followed by Yen and then Euro. Technically, GBP/USD's rebound ahead of 1.2723 support suggests temporary bottoming at least. Focus is back to 1.2927 minor resistance. ERU/GBP's break of 0.8824 minor support indicates rejection by 0.8939 resistance. And risks is now skewed to the downside for 0.8655 support. GBP/JPY will be eying 145.99 minor resistance to confirm short term bottoming. |
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