GBP/USD opened up 200 pips lower as news emerged over the weekend that UK PM was likely to steer the UK out of the EU single market and gain full access over its borders and trade deals.
This amounts to what is called a “hard Brexit” and will create the most turmoil and uncertianty for the UK financial services industry. GBP/USD has tested 1.1980 so far before a small bounce in Asia has led to some reprieve.
Still with two days before the speech the chances of further falls if this claim is not denied is real. The concerns are spilling across into stocks with Nikkei down sharply and USD/JPY being dragged lower with heavy GBP/JPY selling pressure.
AUD/USD has opened up steady at the key 0.7500 resistance with the next move very unsure after a large reversal of the downtrend from 0.7170 in the past two weeks
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