Yesterday offered another object lesson in this market’s inability to find direction, as a curious little ramping in EURUSD intraday toward the 1.1300 handle and a tempting break to a new 1-week high was quickly batted back lower, leaving EURUSD showing five consecutive days of near “doji” indecisiveness- classic! And given today’s holiday in the US, we may make it six days of extending the USD limbo. At present, the only currency with a proper “known unknown” on the immediate horizon is sterling, where it looks as if the Brexit talks are proceeding reasonably well, especially as the EU’s stance on the jurisdiction of the European court of Justice seems to be softening. The purest expression of GBP prospects are in EURGBP where we continue to eye the 0.9000 as a pivotal one as per Wednesday’s FX Update (also referenced below).
