Yesterday the cable rate (GBPUSD) took out the March 2020 pandemic low of $1.1409 – $1.1415. This took it to levels not seen since 1985! However, the price did not stay there for long and has since bounced back above $1.15. Are the bears finished with cable yet? The genuine answer is that no one knows. The trend is still firmly down, and it appears the short boost from a new UK PM has already fizzled out.
Today is all about the European Central Bank and its latest monetary policy announcement which will commence at 12.45 with the decision. It’s likely they opt for a 75-basis point rate increase which would take their main rate to 1.25%. Following the decision, at 13.30 President Lagarde will hold a press conference where she will provide a statement and then answer media questions. At this point, with a large volume of fresh information available, we could see strong volatility through euro currency pairs. Heading into the European morning session the GBPEUR is sitting just above €1.15. Support can be found just below this level. Buckle up!
8:17am, September 8th 2022
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