US Dollar bounce back continues
Daily Currency Update
The Pound extended its decline against the US Dollar as uncertainty surrounding the UK government’s upcoming budget weighed on sentiment. Meanwhile, easing US-China trade tensions lent additional support to the Greenback, pushing GBP/USD lower from its near two-week high of 1.3467 to around 1.3391. Against the Euro, Sterling fared somewhat better, with limited movement as both currencies traded steadily between 1.1500 and 1.1520 amid a quiet data calendar.The Euro also slipped against the US Dollar, continuing Friday’s downward trend driven by improving US-China trade sentiment, reaching a low of 1.1620 this morning. It remained range-bound versus the Pound, reflecting a lack of fresh catalysts. Looking ahead, ECB President Christine Lagarde is set to speak at the Norges Bank Climate Conference later today. While major volatility isn’t anticipated, traders will be watching closely for any hints on future monetary policy.
Key Movers
The US Dollar made a recovery rally off the back of easing US-China trade tensions, with Donald Trump saying that his proposed 100% tariff "its not unsustainable", effectively recovering the latter half of last week's losses for the Dollar. Increased hope for the US China talks later this week in Malaysia and Trump softening tone have given the US Dollar some support, despite the prolonged government shutdown bringing the greenback up to 0.7476 against the Pound and 0.8603 against the Euro. With investors eyeing up today US employment (which may or may not be released due to the shutdown) as a guide to the current health of the economy we maybe set for even more USD strength.Expected Ranges
- GBP/USD: 1.335 - 1.342 ▼
- GBP/EUR: 1.153 - 1.499 ▼
- GBP/AUD: 2.055 - 2.065 ▲
- EUR/USD: 1.161 - 1.163 ▼