It was another eventful day for the Great British Pound which once again embarked on a roller coaster ride based around Brexit related news flow. GBPUSD began the day at the dizzy heights of $1.3050 but slowly worked its way lower as the likelihood of a Brexit deal this week gets increasingly smaller.
As the day progressed, a headline arrived which saw a significant reaction across sterling pairs. After all the hope and expectation had built up for a potential deal this week, the Irish Minister for Foreign Affairs, Simon Coveney, stated that little to no progress had been made on fisheries and that it is highly unlikely a breakthrough will be made this week. These comments saw sterling plunge lower with GBPUSD slicing through $1.30 and falling back to €1.10 against the euro. As we begin Wednesday’s trading session sentiment toward the pound has soured which may well continue across the day.
Yesterday’s UK employment report painted a more sombre picture for the labour market. In the 3 months to August, employment was seen to have fallen by 153,000. This surpassed expectations and in turn pushed the unemployment rate to 4.5%, above the 4.3% expected.
Today’s session sees a producer related inflation metric from the US at lunchtime, we’ll also have several Bank of England and Fed speeches throughout the day.
8:37am, October 14th 2020
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