Stagnant Sterling Sleeping on Support levels
28 June, 2019
As June’s trading comes to a close, Sterling markets remain stagnant and under significant pressure, with any brief gains being sold back down immediately. GBP/EUR is now consolidating at its lowest levels seen this year, with any hope of a real recovery looking a long way off yet. With little data out at the end of the month there is no reason to expect this to change until a more significant catalyst comes along to trigger a movement outside of the current range. New month data in the coming weeks could provide this, however the probabilities are very even for a small move lower or higher from the current rates ahead of the announcement for new Prime Minister on July 23rd. Beyond this there is unlikely to be any market shifting events until at least September when Brexit is back on the agenda in Parliament ahead of the October 31st deadline.
Making the most of the current markets often requires being pro-active rather than re-active, as any better opportunities to buy or sell and frequently short lived and can often only be captured using a pre-placed LIMIT or STOP LOSS order. This is also a great way to relax and switch off from the stress of monitoring currencies as you know that your best and worst case exchange rates are already set in place and therefore your risk is being managed accordingly with your own budget and gambling appetite.
This morning we will have a revised GDP figures for the UK at 9:30am, which will confirm the final reading for Q1 growth at 0.5% assuming no changes as is expected by analysts. Following this at 10am we have latest inflation figures for the Euro-zone forecast at 1.2% with no change from last month. This afternoon the month will finish with GDP figures for Canada at 1:30pm and Purchasing managers index numbers for the US at 2:45pm.
- Sterling had a couple of brief rallies towards the end of last week 22 July, 2019
- Sterling hits lows of 2019 19 July, 2019
- ‘Backstop is dead’ and Sterling is lowest performing currency 17 July, 2019
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