Even with the very low volatility, we have a plethora of developments, particularly in USD pairs, as GBPUSD and EURUSD have posted new breakouts, the former also on the 49-day+ level, while EURUSD finally poked above the mid-November intraday highs as well. Other USD pairs joining the charge lower include USDSEK, USDCHF, NZDUSD and spot gold and silver recently, and other USD pairs, including the USDJPY supermajor are champing at the bit.
Elsewhere, sterling’s strength is seeing it breaking higher versus the euro today as well as recently versus CAD, AUD, and the aforementioned USD.
Today’s Breakout Highlight: GBPUSD
The most powerful break today unfolded in GBPUSD on the combination of both a weak USD and a very strong sterling, with flow likely encouraged on the break of the symbolic 1.3000 level, which took the pair to its highest levels since last May. Assuming the UK general election next week unfolds as the consensus expects and hands Boris Johnson’s Tories a clear majority, there may be room for a rally extension into the next resistance levels.