Good morning,
Yesterday saw the GBP markets reverse some gains made earlier in the week against EUR and USD. Trading levels dropped off to 1.3710 against USD after peaking to a high of 1.3768 on Wednesday evening. Similarly, GBP dropped off against the EUR back down to 1.1660 after reaching a peak of 1.1705 on Tuesday morning.
Sterling traders eagerly await the bank holiday weekend for an uptick in consumer spending, which will hopefully bolster demand for GBP, providing some support against USD and EUR. Consumer spending in the UK continues to grow in August providing some much needed hope for the retail sector. “A new near-term survey of UK business activity shows that 60% of businesses in the leisure and hospitality sector are projecting a surge in revenue over the August bank holiday weekend, with 13% prepping for the busiest bank holiday in a decade.”
Looking into the calendar today, the minutes from yesterday’s Jackson Hole policy symposium should be released and USD traders will keep a keen ear open to Fed chair Powell’s speech later today for any sentiment around the tapering of the US’ bond-buying programme. Fed chair Bullard yesterday made it clear that he wanted the Fed to complete its tapering plans by Q1 2022, which provided some support for the dollar, pushing the EUR/USD market back down to 1.1750.
Have a great day.
James Camp, Relationship Manager.
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