- Pound erases gains across the board and drops again, unable to end the negative streak.
- Cable back to 1.2700 after a spike to 1.2813 during May’s new Brexit plan presentation.
- Brexit: UK PM May present a new WAB but expectations are the same as before.
The Pound rallied during the American session at the beginning of UK PM May’s statement. It quickly lost momentum and over the last hours it continued to retreat and near the end of the session it is trading below the level it had, on its way to another decline across thr board, as it has been the case since May 6.
The GBP/USD jumped to 1.2813, the highest level since last Thursday but the positive momentum was short-lived and retreat, erasing all gains. As of writing is hovering around 1.2700, on its way to the lowest daily close since January 3. Earlier today, bottomed at 1.2684, a new 4-month low.
Cable has been falling constantly following the rally on May 3. Since then lost more than 450 pips. Today, the rally was taken as an opportunity to sell it at higher levels. The new Brexit plan presented by Theresa May did not create positive expectations about the outcome, neither remove the UK political uncertainty. Labour leader Jeremy Corbyn said they cannot support the deal. On Wednesday, May will make a statement in the House of Commons.
Regarding data, on Wednesday, inflation numbers from the UK are due and the Federal Reserve will release the minutes of its latest meeting.