Sterling is currently bouncing in and around the 1.2925 figure against its US counterpart. It appears that the bears remain hungry as we begin the Christmas holidays with the Pound, the weakest on the charts.
UK Prime Minister Boris Johnson, has been using the threat of a no-deal Brexit as a negotiating tactic in the forthcoming trade talks with the EU which has seen the price of Sterling fall from 1.3514 post-UK election highs to a low of 1.2905. Despite UK data and the Bank of England, Brexit remains the main driving factor for the currency.
The Dollar trades on depressing grounds against its main competitors, as the sentiment remains dampened by the Durable Goods Orders downside surprise. Meanwhile, fresh concerns over the US-China trade deal, with the Chinese authorities still not convinced about the US’ intentions on reaching the phase one trade deal, keep the risk tones tepid and weigh on risk assets such as the US Treasury yields.
The main currency pair will remain at the mercy of the trade headlines, Dollar dynamics and limited trading activity. However, any volatile moves cannot be off the table due to scarce trading conditions. The US docket will see the release of the Richmond Fed Manufacturing Index later today.
The Euro is lacking any directional bias against the Dollar, as it extends the consolidative mode below 1.1100 figure as we begin the European trading session, with little of relevance on the cards amid Christmas Eve thin market conditions. Price action is expected to remain low ahead of holidays. With no economic release, the euro finds itself at the 1.1080 mark against the Dollar.
Posted in Daily Market News on Dec 24 2019