Market Report for 25/09/2018


EURUSD
$
3 MONTH TREND –
Resistance $
Support $
GBPUSD
$
3 MONTH TREND –
Resistance $
Support $
GBPEUR
3 MONTH TREND –
Resistance €
Support €
GBPUSD GBPCHF
GBPEUR GBPAED
GBPJPY GBPSEK
GBPAUD GBPDKK
GBPNZD GBPCZK
GBPSGD GBPHKD
GBPCAD GBPTHB
EURUSD GBPZAR
GBPSAR GBPNOK
The prices shown are “mid-market” exchange rates and are not the rates that you will be offered by Cornhill. Your rate will be determined by the amount of currency that you are buying. Please speak with your dealer for a live quotation.
A lively start to the week, attention firmly on tomorrow’s Fed announcement…
The fresh week commenced with a dose of volatility as participants returned back to their desks following last week’s shenanigans. The US dollar began the trading session on the backfoot, allowing the pound and euro to gain significant ground. Sterling led the gains against the buck pushing the GBPEUR rate higher too. It’s a little strange that the pound was the leader following last Friday’s speech from PM May. However, it’s not out of the question that Friday’s plunge lower was a little overdone or, alternatively, participants may have been picking up on headlines that the German government still feel there’s hope for a Brexit deal.

2pm in the afternoon saw a speech from ECB President Mario Draghi. Usually these speeches are formalities which don’t create any headlines, however, yesterday’s was different. One line in the central bankers speech caught the eye of traders & dealers. Essentially, Draghi confirmed that he sees a “…. vigorous pick-up in underlying inflation.” Euro bulls liked this line and as a result pushed the EURUSD pair up to the $1.18 level before it ran into some selling pressure. The idea is that higher inflation means more pressure to raise rates which implies a higher yield from holding the currency, hence the surge to the upside. This pushed the GBPEUR lower, from almost tapping the €1.12 mark it fell back to €1.1150.

Today’s session is another data-light one, attention will be on tomorrow’s Fed announcement. Many will be keeping a close eye on Brexit developments including the Labour Party conference where members are attempting to agree on pushing for another referendum.

EURUSD EURUSD
GBPUSD GBPUSD
GBPEUR GBPEUR

written by Vivek Savani
0203 409 5368

The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information. Cornhill International Payments Limited is a limited company registered in England and Wales. Registered number:6260585. Registered office: 4th Floor, 18 St Swithins Lane, London, EC4N 8AD. Cornhill International Payments Ltd is authorised by the Financial Conduct Authority for the provision of payment services under the Payment Services Regulations 2017 (Reference number: 504494) and supervised by the Financial Conduct Authority under the Money Laundering Regulations 2017.

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