- Brexit: Johnson meets Luxembourg’s Prime Minister Bettel, no advance seen in negotiations.
- US Dollar holds to gains against European currencies, trims losses versus yen.
The GBP/USD dropped further during the American session amid a stronger US dollar across the board. It reached a fresh at 1.2397 and then bounced back above 1.2400.
As of writing, trades at 1.2425, far from the lows but still moving with a bearish intraday bias. Cable is losing ground after posting on Friday the highest daily close since July 18, just below the 100-day moving average.
A stronger US dollar today pushed GBP/USD to the downside. The greenback gained momentum following the attacks on Saudi oil facilities. The DXY is up by 0.40%, above 98.60, having the best performance since late August.
Regarding the Pound, it remains unaffected by recent Brexit devolpments that included a meeting between UK PM Johnson and Luxembourg’s PM Bettel, who reiterated that the European Union won’t give another extension “just for the sake of another extension.”
Data released today showed a decline in the Empire Manufacturing Index from 4.8 to 2.0 in September against the 4.0 expected. Tomorrow in the US industrial production data is due while on Wednesday, inflation data from the UK. “CPI is expected to fall from 2.1% to 1.9% but the weaker pound in August makes the case for an upside surprise. The focus on Brexit means that any surprise may trigger only a short-lived and limited reaction – providing a trading opportunity if it goes against the trend“, said Yohay Elam, analysts at FXStreet.
On Wednesday the cirital event witll be the Fed’s meeting while on Thursday the Bank of Engald will annouce its decision.
Levels to watch
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