Good morning,
The US dollar continued its very muted path yesterday, losing 0.7% against GBP and 0.5% against EUR during the days trading. Consumer confidence is currently at its lowest in over 6 years, as the presidential race for the White House intensifies, Covid worries and trade fears continue to plague the US economy. Traders will be glued to their monitors for tomorrow’s speech by Fed Chair Jerome Powell, at the Jackson Hole Policy Symposium. It is expected that Powell will give a bearish forecast for the months that lie ahead, with interest rates remaining low, in an attempt to aid the economy and keep the shaken consumers spending. Despite the low confidence, the Nasdaq and S&P 500 both finished at record highs.
Today will also see the durable goods orders come from the US. This is expected to show a slowdown in the manufacturing industry. Coupled with the above concerns, there is potential for USD weakness, which could push GBPUSD higher than the 1.3140 level we are currently seeing, bringing recent highs of 1.3260 into sight, where we have seen previous resistance.
GBP is currently riding a good wave of momentum, seeing gains against EUR, USD, as mentioned above and the safe haven Swiss franc. Despite the Brexit deal uncertainties, traders continue to keep the view that a deal will be agreed in October towards the end of the deadline. Data released is also showing traders are closing their short positions on the pound, meaning there is, for now, a turning in the tide of GBP sentiment.
Have a great day. 
Author: Jack Nicholls, Relationship Manager
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