The pound is challenging the yen as the best performing major currency today
Despite the supposed meeting between Johnson and Varadkar being ruled out, the pound is still finding some decent momentum on the day as it continues to gain against likes of the dollar and euro in trading thus far.
Of note, cable has reached the 1.2100 level with the high touching 1.2106. Price is now contesting against support-turned-resistance @ 1.2102.
Sellers still remain in near-term control but this is a decent reprieve for the pound in what looks to be an inevitable move towards 1.2000. Price is closing in on near-term support with the key hourly moving averages lurking nearby around 1.2124-35.
If buyers can break above those levels, perhaps we could see further reprieve in cable ahead of renewed Brexit focus again in the coming weeks.
As highlighted earlier, the key risk events for the pound this week will be economic data releases as we will observe the labour market report (tomorrow), inflation report (Wednesday) and retail sales data (Thursday).
That said, it shouldn’t detract from the overall big picture which is still largely clouded by Brexit uncertainty ahead of the 31 October deadline.