Euro falling back against both the USD and GBP
26 July, 2018
Yesterday was another fairly quiet day in the markets as is the case this time of the month with very little eco data to go on, trading is heavily sentiment based. Of the little data we did see, UK figures came up trumps, although doing little to shift the markets. By the close of hours, the Euro was the biggest loser, falling back against both the USD and GBP. Euro buyers hoping for some reprieve after the gains it made last week, but these could be very short lived with the ECB press conference later today.
With Brexit still taking the limelight, yesterday added more pressure on UK negotiators with the Irish deputy PM stating the ‘UK can’t afford a no deal Brexit’. This after, Theresa May demoted her Brexit department and said she will take control, this could mean a softer Brexit, if she can get it approved in the cabinet. With still no clear messages coming from the UK government and Barnier rejecting the latest proposal, negotiations will need to pick up pace over the coming weeks.
Today is expected to be busier with Draghi speaking at midday, this will focus on the interest rates and the QE programme, with any positive news likely to send the rates even lower. Historically Draghi is quite bullish on the Euro, so if you have an imminent requirement then get your orders in early doors should you want to avoid the risk of rates dropping further. With recent Eco data from the Euro being more positive, will we finally see some adjustments made by the ECB?
There is also data out from the US, Core Durable Goods, this figure is expected to be better than last months, so we could see the afternoon session stacked heavily against Sterling. To be kept up to date stay in touch with your account manager here at Currency Index.
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