Despite Summer Holiday Feel, Risk Still Dominates Majors

. 1 min read

The GBP recovery has been short lived and small so far this week. The FX market is desperately seeking reasons to buy the Pound that would give UK importers at least some temporary respite. We could need a little more than Angela Merkel playing the diplomat, to shift momentum higher.

Euro

Elsewhere, the resignation of the Italian premier is doing little for the EUR, and the potential for a German recession is keeping the single currency paired back for the time being.

USD

In the US, Federal reserve minutes and intimation of the size of the next interest rate move, is the real focus for the USD. With the DXY (USD trade weighted index) still remaining upbeat. As a consequence, GBPUSD hovers above 1.2100, almost magnetic line. Exporters could look to target a break below this level for upcoming hedging programmes, or short-term spot transactions.

There is still a summer holiday feel to FX markets, with liquidity generally down and direction anodyne. For now. Risk, however, still dominates.

Please contact us for more info about your international payments, login or click here to register and save now.

Please Note:
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.


For more information about XE, please click here: Regulatory Information