Fears of a no-deal Brexit and coronavirus concerns kept a lid on strong follow-through, Haresh Menghani from NDDFX briefs. The cable is stable as Brexit related headlines can produce some trading opportunities in the day ahead.
“The pair remained capped below the key 1.30 psychological mark amid persistent fears that Britain might crash out of the European Union at the end of the transition period later this year. This coupled with growing concerns about the economic impact of the coronavirus outbreak continued lending some support to the greenback’s perceived safe-haven status against its British counterpart and held investors from placing any aggressive bullish bets.”
“The cable now seems to have stabilized and was seen oscillating in a narrow trading band below mid-1.2900s through the Asian session on Monday.”
“In absence of any major market-moving economic releases, either from the UK or the US, the incoming Brexit-related headlines will play a key role in influencing the broader market sentiment surrounding the sterling and produce some short-term trading opportunities on the first day of a new week.”