In what is a complete contrast to yesterday’s update, Sterling was trading as the strongest currency in FX markets by lunchtime. With every Brexit related headline that is released in the press, GBP follows with a swing in either direction. Some analysts, who predict a more bullish outcome from the divorce deal, saw this as the perfect opportunity to pounce and buy the oversold Pound, capitalising on the sell-off over the last week and gravitating towards the big 1.30 level.
GBP is back in the spotlight once again this morning, as manufacturing data and GDP data is due to be released at 09:30 GMT. Analysts are not confident of the outcome however, with a market consensus predicting a flat quarter for overall economic output in the UK. This could once again see the Pound on the back foot, as we are already seeing a sea of red on charts this morning.
Across the pond, Donald Trump has been pressing the Fed again, in a bid to persuade them to push interest rates lower. Whilst speaking at a rally in New Hampshire, he said that Jerome Powell had “let me down”. Jerome Powell himself will head to Capitol Hill this afternoon, giving his testimony on the economy and the outlook for the US. The markets will be keeping a keen eye on his views, to see if there is any weight behind Trump’s pleas.
Have a good day,
Author: Jack Nicholls, Relationship Manager
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