After the volatility-heavy Tuesday trading session things quietened down on Wednesday, with equity markets holding their composure and currency markets almost doing the same.
The pound continues to remain in a restricted short-term trading range against both its major counterparts, the euro and US dollar. It’s been within 1 cent ranges against both, not surrendering any further ground but failing to gain back any of its recent losses. The currency remains in limbo, awaiting the next dose of Brexit headlines which are now starting to be reduced as we enter the middle period of Parliamentary recess. Many MPs will be off on their holidays while the country awaits its fate as we get ever closer to the 31st October deadlines.
Both GBPEUR and GBPUSD have big support levels just below where they currently trade. These levels go back a number of years and proved key points for reversals. Clients exposed to these pairs should be aware that, if allowed to be broken, it could be a strong signal that that pound is heading further south. On the GBPEUR pair this comes in at €1.0750 and then the €1.06 price mark and for GBPUSD $1.20.
Today’s trading session is once again very light on data points. US jobless claims and wholesale inventories as well as Canadian house price index are the only releases of note.
Written by Viv Savani. 8:28am, August 8th 2019
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