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Friday, September 21, 2018

GBPUSD Plummets

GBP: The Pound is the underperformer during today’s session, paring back all of its gains from yesterday’s session with GBPUSD back below 1.31. The rather unsuccessful meeting in Salzburg, in which the EU had rejected the Chequers proposal has weighed on the recent optimism surrounding Brexit. This had been further exacerbated by PM May’s press conference who stated that UK and EU are at an impasse with two key issues are a long way apart (Irish Border + Future relations after Brexit.
CAD: The Loonie remains magnetised around 1.29 in what has been a relatively choppy session. The latest inflation report showed the headline figure falling 0.2ppts to 2.8%, in line with expectations. However, the BoC’s preferred measure of inflation saw an 0.1ppt uptick to 2.1%, consequently keeping the CAD on the front foot.

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