UK’s Jenrick EU needs to show flexibility on Brexit

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So far, EU has not shown flexibility
Unless the EU comes back to us with that, we will leave without a deal
We don’t want a no-deal but we have to move forward
The UK is keeping with their ‘hard’ stance for the moment, but the narrative hasn’t changed all too much since Johnson’s statement at the end of last week. Brexit talks are still expected to continue later this week so we’ll see how that goes.

Pound Traders Look Beyond Brexit

Meanwhile, behind the scenes there are murmurs about the UK tweaking the internal market bill in an effort to reach a compromise with the EU, so there’s that.

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Major currencies are more mixed to start the day, though general movement is rather mild. The pound posted a slight advance earlier, but fell short of testing the confluence of its key hourly moving averages against the dollar @ 1.2953-64.

UK Posts Largest Deficit

Elsewhere, EUR/USD continues to linger closer to 1.1700 with near-term resistance from its 100-hour moving average @ 1.1735 also limiting any topside momentum.

Euro to Pound Sterling Exchange Rate

Gold is an interesting one as buyers are looking to seize near-term control at the moment on a break above its key hourly moving averages around $1,903.

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However, there is near-term resistance seen closer towards $1,913 with some support seen around the $1,898-00 region for the time being.

US futures are keeping a modest advance to start the day as stimulus hopes continue to feed investor optimism for now. But we’ll see how long that can last when surely there isn’t going to be a deal done before the election. So, there’s a thought to consider.

It looks like we may be in for a more quiet start to the day but amid some slight positive flows into risk, that could play into some dollar weakness perhaps later in the session.

no deal between UK and EU

But as mentioned, it may be tough to get swept away by that narrative considering that the early optimism here may not be justified at the end of the day.

As such, watch out for the key near-term technical levels again as that will provide an indication of the strength of the bias in the market as we get the new week underway.