- August 13, 2018
- Posted by: Trading
- Category: Alerts
- UK jobs, wages and inflation data may underpin a weak Sterling complex.
- Brexit discussions re-start on Thursday – will tensions ease?
Sterling Rattled by King Dollar, Risk Sentiment Wanes on Turkey
Sterling is trading below 1.2800 against a super-strong US dollar and needs a dose of good news to brake the fall. UK inflation, jobs and wages data – all expected close to last month’s prints – are unlikely to aid Sterling but Thursday’s Brexit talks may throw up some market moving news, so traders need to be attentive to market headlines.
Market sentiment remains negative due to the ongoing currency turmoil in Turkey which is helping the US dollar gain strength instead of other traditional safe-havens, notably gold.
GBPUSD continues to trade below 1.2800 and may fall further with the June 21, 2017 swing-low at 1.25891 the next target – support at 1.27738 has already been broken and closed below. The market looks oversold – RSI indicator – and any good news from the EU/UK talks could see the pair trade up towards 1.29575.
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— Written by Nick Cawley, Analyst
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