GBP/USD Trading At Yearly Low
Sterling lost ground yesterday following the raft of UK data releases which fuelled further concerns that the underlying recovery was fading, especially as the September GDP data was boosted by health-care spending. A faltering recovery would make it more difficult for the Bank of England to justify higher interest rates.
The latest quarterly trade data also recorded a small decline in exports to the EU while imports increased. The underlying trade performance will continue to unsettle Sterling confidence, especially with underlying trade tensions also persisting.
Markets will also be remaining on alert however for comments from Bank of England officials given speculation of a potential rate increase next month.
Currency wise, GBP/EUR opens this morning at the 1.1685 mark, GBP/USD has picked up slightly overnight after taking a heft beating yesterday and falling to its lowest level of 2021 to trade around the 1.3380. The EUR/USD has also fallen to its lowest level of the year and currently finds itself hovering under the 1.1450.
Datawise, the only piece of release worth noting is the JOLTs Job Openings in the US. The reaction however, is not expected to be market moving.