Sunday 11.11.2018 FX opening rates.

Good evening, I hope you had a restful weekend, welcome back to the wonderful world of FX for another week of adventures.

The main news is Brexit news, and it’s not good. Ryan already had most of the earlier press headlines up , the Independent is adding that Theresa May is forced to cancel planned the Monday cabinet meeting to approve her deal and BOJO talks about May’s  “total surrender”. GBP opens a fair bit lower. It’s not the end of the line but together with all the rest of the “What if it goes wrong” businesses’ moves, there a risk for cable to lose some more at the start of the week as the market hates uncertainties, especially negatively tinted ones.
I’ve cut a small short EURGBP that I had re-entered out of precaution. Although a deal is still my base case, needless to go and risk money just for fun.

Elsewhere Germany’s CSU Seehofer finally wants to resign. In a better environment it could have been seen as a positive for Merkel as he’s been criticising her more than once, but it does undermine the govt’s stability in current fragile situation. EURUSD is closing in again on the 1.1300 barrier.
France’s Lemaire is adding his grain of weight on Europe’s need for fiscal convergence.
Italy’s commedia del’ arte on their budget continues. Calling for lower growth to get a deal with Europe, right ….

An week starter’s read by Westpac on the risks for the AUD. Note they’ve been rather dovish for a while.

Here are the opening rates, illiquid at this time of day, be careful out there. Wishing you al a good week in our company again.

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