The UK Leadership Race Update: Into the Final Week We Go
The Tory Party leadership race goes into its last week. Boris Johnson remains favorite going into tomorrow’s ballot. Does that mean no-deal?
For the Pound
We can expect the markets to be holding their breath going into tomorrow’s ballot. The EU continues to talk of no further negotiations. A Boris Johnson victory raises the chances of a no Brexit exit… That’s not been a good thing for the Pound and will likely remain so.
A Tory Party leader, who can bring the Tory Party together is positive. For the Pound, however, it does ultimately boil down to Brexit.
Trading Central – GBPUSD: sentiment is a sell to 1.2340 if Below 1.2800.
EUR/USD flirts with 50-hour MA ahead of German ZEW survey, Draghi’s speech
When it is going to happen:
From a technical perspective, bearish traders are likely to wait for a sustained weakness below the 1.1200 temporary support – marking 61.8% Fibonacci retracement level of the 1.1107-1.1348 recent up-move, before positioning for any further depreciating move. A convincing breakthrough will suggest the resumption of the prior bearish trend and turn the pair vulnerable to accelerate the slide back towards challenging the 1.1100 round figure mark with some intermediate support near mid-1.1100s.
Trading Central – EURUSD: sentiment is a sell to 1.1115 if Below 1.1340.
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