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FOREX: GBP Cements Place as Tuesday's Worst Performer

FOREX
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GBP cementing its position as the poorest performer in G10 today, with another pullback low at 1.2755 in recent trade - this extends the losses on the break of the 200-dma earlier this morning, which had held as solid support back in August.

  • The greenback remains the key catalyst here, as markets shrugged off the higher-than-expected wages numbers out ahead of the UK open, and while BoE's Pill made no particularly new comments on monetary policy (again using the word 'gradual'), he referenced economic pressures from the last Budget as a "short-term" demand shock - potentially playing down any hard impact on the longer-term neutral rate.
  • Short-term support at 1.2799 has given way, but 1.2665 is seen as a more significant level, marking the reversal low from August. EUR/GBP's ability to continue straddling 0.83 could also be pressuring GBP/USD here.
  • Bailey's appearance at Mansion House this week provides the key risk event, who speaks alongside Chancellor Reeves - however it would be unusual for him to mark a notably different tone on monetary policy. Read more here: https://marketnews.com/boe-upcoming-mpc-speakers-1-2

 

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GBP cementing its position as the poorest performer in G10 today, with another pullback low at 1.2755 in recent trade - this extends the losses on the break of the 200-dma earlier this morning, which had held as solid support back in August.

  • The greenback remains the key catalyst here, as markets shrugged off the higher-than-expected wages numbers out ahead of the UK open, and while BoE's Pill made no particularly new comments on monetary policy (again using the word 'gradual'), he referenced economic pressures from the last Budget as a "short-term" demand shock - potentially playing down any hard impact on the longer-term neutral rate.
  • Short-term support at 1.2799 has given way, but 1.2665 is seen as a more significant level, marking the reversal low from August. EUR/GBP's ability to continue straddling 0.83 could also be pressuring GBP/USD here.
  • Bailey's appearance at Mansion House this week provides the key risk event, who speaks alongside Chancellor Reeves - however it would be unusual for him to mark a notably different tone on monetary policy. Read more here: https://marketnews.com/boe-upcoming-mpc-speakers-1-2