Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Cable Soars On No Hard-Brexit Relief

By Boris SchlossbergForexFeb 26, 2019 06:08AM ET
Cable Soars On No Hard-Brexit Relief
By Boris Schlossberg   |  Feb 26, 2019 06:08AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Market Drivers for February 26, 2019

  • Cable soars on no-hard-Brexit relief
  • All eyes on Powell in NY session
  • Nikkei -0.37% DAX -0.17%
  • Oil $55/bbl
  • Gold $13286oz.

Europe and Asia
No data

North America
USD: Housing Starts/Permits 8:30
USD: Powell Congress Testimony 10:00

Cable was the star of the show in overnight trade tonight as the pair finally broke through the 1.3200 resistance line on renewed market confidence that a hard-Brexit exit from the EU was not going to happen.

Two events yesterday helped fuel the rally. One was the formal call by Labor party leader Jeremy Corbyn for a second Brexit referendum and the other was reports that PM May would consider extending the deadline if her Brexit negotiated deal could not pass Parliament.

In both cases, the Labor and Tory leaders were clearly reacting to the revolt within their respective parties against a seeming slow roll toward an economic cliff edge. The events of the past 24 hours appear to have put a hard break on the possibility of a very messy and disruptive non-negotiated exit of UK from EU. The market has long held that bias with cable remaining bid over the past few months despite repetitive failures to reach a deal and today’s event appear to have validated those views.

Having now priced in the prospect of no hard Brexit, cable may consolidate at these levels as the political wrangling continues, but barring some unforeseen scenarios today action suggests that a non-negotiated exit will not occur.

In North America today the focus will be on Fed Chair Jerome Powell who will provide his semi-annual testimony in front of Congress. The key focus of the market will be on whether Mr. Powell will deviate from his dovish stance. This appears unlikely as the history of Fed policy changes suggests that it will stick to an easing course to engineer a soft landing of the economy before resuming normalization.

Although economic activity has picked up post the chaos of US government shutdown, it is still too early to tell if it has hit trend growth. The prudent choice would be for Powell to maintain his easing-focused rhetoric. However, the danger lies in the fact that Fed may want to assert its “independence” and if Chair Powell indicates that rate hikes will resume in the second half of the year the rally in risk assets that we have seen over the past month could come to a screeching halt.

Cable Soars On No Hard-Brexit Relief

Related Articles

Ashraf Laidi
The Other Dollar Index By Ashraf Laidi - Jan 28, 2022

Just as you become more certain the US dollar will go nowhere but up, you stumble into this analysis, suggesting other ideas. No, this is not a piece explaining the Fed's inability...

Cable Soars On No Hard-Brexit Relief

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email