Another Bremain Positive Poll Lifts GBP: New Lows Against the EUR, Bid Tone in the USD Limits Cable

Another Bremain Positive Poll Lifts GBP: New Lows Against the EUR, Bid Tone in the USD Limits Cable

24 May 2016, 17:40
Roberto Jacobs
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Another Bremain Positive Poll Lifts GBP: New Lows Against the EUR, Bid Tone in the USD Limits Cable

GBP provided the early volatility in the FX markets, as the latest EU poll from Telegraph/ORB continued show the ‘remain’ camp extending their lead – Tory voters and older generations moving back over to Bremain.

Cable rallied through the 1.4500’s, breaking 1.4600, but we are running up against some decent offers ahead of the recent 1.4662 high.

EUR/GBP did manage to break the lows from last week, modestly taking out .7650. This contributed to the EUR/USD move through 1.1180, and staggered losses have now taken out 1.1150.

AUD/USD was also a notable loser on the day with RBA comments on their commitment to the inflation target pushing the pair back under .7200 and eventually below the .7177 base. .7150 also breached, but losses are proving hard to come by from here.

USD/CAD has been similarly stubborn, with strong gains in equities today, but more so Oil failing to push the spot rate below the support seen at 1.3120-30, but taking this out late in the day. Widening yield differentials may change when we hear more from Fed chair Yellen at the end of the week, but for now, buoyant USD rates continue to maintain a bid in the greenback, though we sense this is coming under some strain.


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