After an early dip in Asian trading the pound has found a bit of dip-demand

A few people pointing the finger at the spectre of a Scottish referendum taking place as/soon after PM May triggers Article 50 but I think it's more a combination of a number of reasons.

Referendum/Brexit/single market uncertainty ( none of that that is new though), weaker economic data lately, no/little chance of interest rate hikes til end of 2018, Yen strength (GBPJPY a prime mover), month-end EURGBP flows, thin Asian liquidity. Potential fall-out from the FTSE-Deutsch Borse merger breakdown.

Is that enough ? Yep I reckon so and a combination of all/some of those have been undermining the pound for a while now and I remain a seller.

GBPUSD currently 1.2420 after 1.2391 lows and EURGBP 0.8507 after 0.8521. I highlighted the month-end flows from BUBA a few times again last week with a warning that given the short February we'd likely see it kick in earlier. I hope some of you took heed and bagged a few pips. It could well be that most of the move/buying is done now but the pair should be underpinned although I'd expect more offers/res around 0.8535 and 0.8550

Nothing new in any of this but some traders seem hell bent on justifying/explaining every single move so I'm just throwing a few thoughts out there as we wait on European desks to cast their vote.