- GBP/EUR finally broke through the 1.15 level that it has been testing over the past week. The market opened at 1.1459 and rallied to fresh ten-month high of 1.1565. We closed comfortably in the mid-1.15s at 1.1546.
- 1.15 was a significant resistance level and assuming that the upward momentum remains then the next target to the upside from a technical point of view will be mid-1.16s.
- Sterling also gained value on the US dollar yesterday with the market moving up from 1.4174 to close near to the recent highs at 1.4227.
- Russia has warned the USA that air strikes on Syria following last week’s suspected chemical attack could spark a war between the two countries. Moscow’s UN ambassador Vassily Nebenzia said that the ‘immediate priority is to avert the danger of war’ and accused Washington of putting international peace at risk stating that the situation was ‘very dangerous’.
- Canadian NHPI m/m came in soft yesterday at -0.2% vs 0.1% expected.
- US unemployment claims came in roughly as expected at 233K vs 231K.
- Last night business manufacturing index came in at 52.2 after coming in at 53.3 last time out.
- Chinese trade balance showed -30B when 179B was expected.
- GBP/AUD, GBP/NZD and GBP/JPY are currently trading at 1.8311, 1.9321 and 153.81, respectively.
- Sterling still has momentum this morning and is currently up 0.27% on the euro and 0.44% on the US dollar since the open.
- It looks like a quiet day ahead on the data front with only preliminary UoM consumer sentiment from the US at 3pm.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|15:00||USD||Prelim UoM Consumer Sentiment||100.6||101.4|