JP Morgan analyst, Malcolm Barr, remarks in a research note to clients
The firm says that it would be a surprise if there was enough progress made to bring about an agreement by the end of October, though chances of a no-deal Brexit materialising is about one third in their view:
"The chance of a no-deal is about a third, but with brinksmanship part of the process it may appear higher than that before an agreement is reached."
In other words, negotiators from both sides are expected to leave it to the last minute - as per what we have been accustomed to with all things Brexit over the years.
We're now entering the supposed "hot phase" of negotiations but both sides are still unlikely to produce much room for a compromise, so that may be a key risk factor to consider for the pound over the next few weeks.
As I discussed in the previous review, the Gold managed to reject from the key pivot resistance at $1,975 as I expected yesterday.
Further Development
Analyzing the current trading chart, of Gold I found that Gold is heading towards our yesterday's target at $1,912.
In case of the stronger breakout of the $1,912, there is potential for test of next downside reference at $1,863.
Watch for selling on the rallies...
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lean Hogs and Palladium today and on the bottom Heating Oil and Lumber.
Key Levels:
Resistance: $1,975
Support levels: $1,912 and $1,863
