Trading remains sideways

Yesterday saw the recent market trends continue with trading remaining sideways and within a half a cent range. With the markets seemingly Waiting for any Brexit updates before the next major movement, and with several key dates approaching these movements won’t be far. With the EU summit only 2 weeks away and key Brexit speeches before that taking place, the markets are expected to remain volatile. The current levels are now matching those of early June before the dip in August, and like then these levels could be temporary before the markets take another dip due to the surrounding uncertainty.

The USD was the biggest gainer yesterday, with the UK Services PMI coming in as expected and the US non-manufacturing PMI above expectation, the Greenback gained on both it’s major pairings. The afternoon session heavily dominated by the US markets putting both the Euro and Sterling on the backfoot. The issues ongoing in Italy, not aiding the Euro, but to demonstrate the stagnant nature of the markets over the last few days, even this blip in the Eurozone failing to really see the Euro lose out to its major pairings.

Speeches continued yesterday at the Conservatives meeting in Birmingham, where Theresa May rather unusually danced to stage to the music of Abba. With her Brexit strategy under fire, notably from Boris Johnson, she claimed to be ‘standing up for the people of Britain’ and promised cuts to public spending. There was, however, no direct comments to Brexit or her Chequers deal. The next few weeks will tell if Theresa May dances out of Europe or is cornered once again by her EU counterparts.

There is no major data out today with the next key data for the month out on Friday, US non-farm employment change, will the USD make further gains? Stay in touch with your CI account manager to be kept up to date.