GBP/USD: Cable Crushed as Brexit Talks Go Awry, FOMC on Deck

Talking Points:

– Next week is the final week of Q3, and it looks to be a prime backdrop for volatility as we wind down what’s become an interesting year of FX price action. The British Pound is on the move this morning as Brexit discussions have seemingly disintegrated in front of our eyes, and it now looks like the UK is going to need to go back to the drawing board. Already, Theresa May is talking up Hard-Brexit options, and this is something that could continue to provide pressure into the Pound.

– Not to be lost in the shuffle, both EUR/USD and the US Dollar put in significant moves yesterday as each broke out to fresh inflection points. EUR/USD is softening after establishment of a fresh Q3 high, while USD is pulling back to find a bit of resistance from prior short-term support, taken around the 94.33 level that helped to set a short-term low on Tuesday and Wednesday of this week.

– DailyFX Forecasts on a variety of currencies such as the US Dollar or the Euro are available from the Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2018/09/21/eurusd-chart-breakout-gbpusd-price-reversal-in-focus-ahead-of-fomc-outlook-forecast-srepstans.html