Finally, we note that sterling is on the move today, especially in the wake of a Boris Johnson cabinet shuffle today and we focus on GBPCHF as an interesting breakout candidate below.
Today’s Breakout Highlight: GBPCHF
The weak euro story is fairly well established at this point, but one of the newest movers in recent sessions, and especially today, is sterling, which has moved sharply higher across the board, especially in the wake of today’s political moves that may be lighting a fire under market anticipation of a large fiscal stimulus announcement at the coming March budget statement. UK yields were sharply higher and sterling was stronger on the day. Besides the recent EURGBP breakdown, we have also seen a reversal (so far) in the recent GBPUSD breakdown and GBPCHF, shown below is eyeing a new 19-day high close, though we are still far, far below the 49-day breakout levels. Interesting to watch CHF as well as GBP here as EURCHF has been on a long grind lower and USDCHF is also mulling a breakout higher on today’s close.