A soggy session for the pound continues as NA desks enter the fray 8 Nov
It's been steady enough and for the most part been led by EURGBP demand and that pair has now tested sell interest/res at session highs of 0.8850-55, after holding 0.8820 earlier, an area I highlighted.
Stop me if you've heard this one before but I'm also putting some GBPUSD option contract expiries in the mix of reasons/factors/influences here. GBP 500m at 1.3090 isn't too huge but as cable has fallen one side of those contracts will have been smelling blood and therefore probably encouraged to push further. Defence though equally has so far seen that level hold.
Coincidence ? I don't think so. More expiries down around 1.3050 which has been a decent support area anyhow recently so no surprises to see them there.
GBPJPY also a prime mover as often the case in these sustained moves and we've now seen session lows of 148.78 from 149.80 as USDJPY also struggles to rally pinned down by its own option interest. Recent support between 148.50-60 has provided a decent base and remains the next target/support area.
General concern prevailing over Brexit talks, lack of any urgency for BOE hiking rates and a UK govt/PM struggling from within all helping to undermine the pound again.
Currently 1.3105 as EURGBP falls back to 0.8840 from 0.8854 and I remain a GBP rally seller with 1.3180-00 and 0.8800-20 now providing solid levels.
