GBPJPY and GBPCHF in trouble at the open on Monday?

by | September 30th, 2017, 21:42:55 | News

North-Korea has been seen moving missiles from the development center

There have not been any signs of a launch yet but South-Korean “sources” have seen missile movements.So there is a risk for another
test, hopefully it stays at that point.Risk could feel fragile(mostly JPY,CHF and Gold stronger) as at the same time Tillerson said to be “in talks” via a couple of channels with North-Korea, but the people involved have been reporting that North-Korea is not interested in these talks. It’s all via Reuters and a few other channels.
Why against GBP? Boris Johnson just undermined Theresa May’s reconciliatory Florence speech in setting out four “Red Lines” not to trespass in Brexit negotiations with the EU.

  • Uk should not accept new ECJ nor EU rulings during the transition period
  • The transition period “should not last a second longer” than 2 years
  • Britain should not pay for EU single market entrance once the transition period ends
  • Uk should not shadow European rules to maintain access to the single market .

That’s about restricting every point Mrs May tried to make flexible. Seen her already fragile status, with the Conservative Conference underway, we can expect a wobbly start of the week on Uk’s political front.
Put above facts into a shaker, don’t add any ice,no need, stir well and look at the cocktail we get. It should look quite red for GBPJPY and GBPCHF at the Monday morning open unless NK say they were just
taking them for a walk and BJ made a slip of the tongue. For reference GBPJPY closed 150.70, GBPCHF at 1.2985.

 

K-man
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