IFX Market Report: Wednesday 16th June 2021

Brexit is back in the headlines as EU citizens face no right to remain in the UK, despite Ireland expecting to Britain to ease its stance on the matter. On Tuesday, “GBP/USD refreshes intraday low to 1.4077 within a choppy range below 1.4100 during Wednesday’s Asian session. The cable pair dropped to the lowest in a month the previous day before bouncing off 1.4034. However, chatters surrounding UK’s covid conditions and Brexit woes join the pre-data/event cautious sentiment to weigh on the quote of late… As per The Telegraph, “Experts on the country's Joint Committee on Vaccination and Immunisation (JCVI) are understood to be preparing an interim statement for release as soon as the end of the week following a meeting yesterday.” The news poses extra challenges for the UK’s covid conditions as it battles the Delta variant spread that recently pushed back unlock deadline by four weeks.”

However, the Mirror tabloid quotes a notable Think tank UK In A Changing Europe while saying, “Hundreds of thousands of EU citizens entitled to settle in the UK may miss the post-Brexit deadline to apply and be left in legal limbo.” This suggests a looming Brexit risk and fresh tussles even when the key issues like Northern Ireland (NI) protocol are unsolved.

GBPUSD unfortunately made a dramatic loss yesterday, falling below the 1.4100 mark. Cable opening at 1.4121 but closed way below that 1.4086.

Similarly, to Cable, GBPEUR made a made a loss on Tuesday. The pair started the day at 1.1644 and closed at 1.1618.

EURUSD was able to close 1 pip above where it opened at 1.2126 and closed at 1.2125.

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