This is a market itching to buy the pound
The Brexit angst from yesterday is quickly forgotten now as we continue to wait on more concrete developments from talks in London, with Barnier and Frost set to brief on the state of play either some time today or tomorrow.
But for the pound, it is shrugging off any pessimism as punters are continuing to bet on a more optimistic outcome. Cable is now trading near the highs for the week, testing the resistance region at 1.3430-40 as the pound is the best performer in trading today.
This follows the rebound from the lows yesterday, which tested the 1.3290-00 region.
A push above 1.3440 may well pave the way for a retest of the 1 September high @ 1.3483 next but the caveat to sustain such a move will depend on Brexit headlines.
As things stand, buyers are relatively unfazed and are "expecting" some form of a compromise to be struck by the end of the week.
However, just be wary that if there isn't any firm answers by tomorrow, we could see some position squaring before the weekend - similar to last week.