APAC Session: Mayday sends GBP lower in Asia

GBP has been the notable mover in the G10 FX space today, finishing nearly 100 points lower into London’s open.

GBP has suffered today after opening at 1.2270 this morning in Asia. Falling against both the USD and the EUR throughout the session. The sell-off accelerated at GBPUSD broke 1.2200 and EURGBP moved up through 0.8600 with stop-losses being triggered in both.

PM Theresa May’s answers to the UK’s Brexit strategy over the weekend in the press have not been well received. Increasing worries the behind the scenes the UK Government doesn’t really have one. The executive summary seemed to read something like, “we want full control of our borders and laws and also full access to the European markets for our companies, they’re all all mutually exclusive.” A quite optimistic opening gambit by the UK in this simple Kiwi’s eyes. Good luck with that Mrs May….

Following on from Fridays so so Non-Farm’s, but excellent hourly earnings in the USA, the inflationista’s have sent US Yields a bit higher today and German yields have also risen.  GERMANY’S 10-YEAR GOVT BOND YIELD RISES TO THREE-WEEK HIGH AT 0.318 PCT – source  TRADEWEB . None of this is good news for GBP.

More stories about increased pension liabilities in the private sector and spiralling decommissioning costs in the North Sea all meant GBP had few friends today.


The rally in EURGBP  to 0.8655 is perhaps especially significant. There were clearly stop losses as 0.8600 was breached but much mort notable is the  100-day moving average at 0.8630 that has also now broken. EURGBP has been locked between its 100 and  200-day moving averages since early November. A close above  0.8630 implies a move to 0.8700+ initially.

Resistance is at 0.8670 initially and then 0.8710. Intraday support lies at 0.8630 now and then 0.8575.



GBP/USD will close around 100 points lower on the day in Asia.  Stop-loss selling was seen as 1.2200 broke with support at 1.2193 fairing no better. This now becomes resistance intra-day with the next resistance at 1.2430 the previous two day’s highs.

Support is at 1.2160 the days low and then 1.2070 the post-flash-crash lows.


Elsewhere, things were much more dull with Equities the notable winners on the day. Following the US lead from Friday the ASX was up 0.62%, Japan 0.46%, Singapore up 0.52% and Hong Kong 0.44%.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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