Cable off the highs and down to session lows around 1.2735
It's all about the headlines now for the pound as Brexit risk is heightened and volatility is arguably the highest it has been all year round.
A simple tweet revealing that the DUP may not be on board is just about enough to trigger some jitters but if an official communication comes about, I would expect it to send the pound much lower as it will put a serious dent in the hopes of a Brexit deal.
As for what to expect next in the pound, I reckon there's the likelihood of good two-way movement during the trading day.
For one, hopes of a draft Brexit deal being struck will give the pound some reprieve in the near-term. However, unless such a deal has a good chance of passing in the UK parliament, it will all be for naught as that puts us back closer to a no-deal Brexit at the end of the day.
We're fast approaching the light at the end of the tunnel now. The question remains, is it really the way out or is it a train ready to slam the pound all the way back the other way?
