Free Trial

GBP and Haven FX Lead G10 Charge As Dollar Strength Abates

FOREX
  • The greenback's ascent this week was halted on Thursday as US yields slipped lower and risk sentiment waned. JPY and CHF were the biggest movers, rallying just over 0.5% as equities also took a knock. The dollar index retreated 0.2%.
  • Equally buoyant was GBP, that took its lead from a technically induced move lower in EURGBP during European hours, breaking back below 0.8560. Late dollar weakness helped GBPUSD (+0.5%) regain some poise towards the best levels of the week.
  • Notably narrow range for EURUSD (1.1805-1.1841) over the ECB statement and press conference. The single currency firmed slightly off the lows on reports that ECB to buy 60-70bln in PEPP per month (with flexibility), coinciding with Bund futures rolling off the session highs.
  • The minor Thursday uptick does little to change the overarching outlook and need to top resistance at 1.1909, the Jul 30 and Sep 3 high to progress higher. The support to watch is 1.1735, Aug 27 low. A move through this support would instead suggest the recent rally is over.
  • European industrial production data features in a quiet early calendar, however US PPI and Canadian August employment may prompt some action, headlining the US session data docket.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.