- As ever, Brexit angst and conflicting headlines are taking sterling for a ride and the cross is taking a beating on current optimism that a deal is close to being inspected by PM Mays Cabinet today.
- EUR/GBP is now down to the lowest levels since April this year when the price registered at 0.8621 low.
- EUR/GBP is currently trading at 0.8659, having scored a low of 0.8655 and down from a high of 0.8742.
The latest is that DUP Deputy leader Dodd is sceptical that an EU / UK deal will be signed off today by PM May’s Brexit cabinet, but some of the good news is already being priced into the pound – a headline that came through first of all that according to The Sun’s political editor, Tom Newton Dunn, the UK Cabinet could be summoned today to sign off on a draft deal that PM May has managed to secure with the EU.
Still a long way to go yet
However, let us not forget, that even if a deal is signed off, it by no means that it will get Parliament’s vote. Time is running short for a deal that will pass muster for all stakeholders. For the meanwhile, at least, EUR/GBP has made a lovely row of bearish candles on the 4hr charts and is not far off from completing a full 100% retracement of the April rally from 0.8621 to 27th August highs up at 0.9098.
Today’s Brexit headlines
- EU and UK negotiators agree text for Irish border – RTÉ News.
- UK PM May expected to present draft Brexit deal on Wednesday.
- The Times’ Sam Coates: Business groups to be briefed on Brexit tomorrow.
- BBC’s Kuenssberg: Cabinet to sign off a text of divorce deal tomorrow.
- DUP Spokeswoman: We have to wait to see a deal, our red linesare well known.
- UK: Cabinet will meet at 2pm tomorrow to consider the draft agreement.
- Irish ForMin Spokesman: Negotiations between EU and UK on a withdrawal agreement have not concluded.
EUR/GBP levels
Analysts at Commerzbank warned that failure at the 0.8691/80 April and current November lows on a daily chart closing basis could trigger a swift drop to the April low at 0.8620. Below there, 0.8527 and then 0.8330 will represent the 161.8% fibo extension 0.8330 lows. Before then, we have the 123.6% extension at 0.8511
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