A notable event from yesterday was the sharp drop in GBPUSD, with price toppling from 1.3267 to 1.3060 in the space of 4 hours. There was very little in the way of data or market headlines that could have attributed to such a sharp drop, but with price being overbought it felt like a general re-levelling of price. We’re now back in the same range that price had spent the majority of August in, with 1.30 still acting as the support “floor”.
EURUSD in similar fashion suffered the same fate yesterday with price being squeezed down from 1.20 to 1.1831.
Comments from the Chinese commerce ministry have confirmed that further trade talks are due to be held with the US, but recent events have been hit with delays and disruption, meaning it is unlikely to change the current narrative. In a simplified state, conversations or even the idea of talks are a boost for the risk mood.
ECB monetary policy meeting accounts are due out at 11:30, alongside US jobless claims and the Philadelphia manufacturing survey at 12:30 .
Tomorrow is a busier day for impact news with a focus on manufacturing performance in the Eurozone as a whole, Germany, France, UK and the US. We will also see the UK’s retail sales performance from July.
Have a great day.
Author: Alistair Hutson, Senior Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.