GBPUSD vulnerable to further losses
The Sterling Dollar rate briefly broke below 1.2700, touching 1.2698 – a level not seen since September 2020, leaving the pair vulnerable to further losses. The USD has benefitted from both hawkish fed speakers and weaker risk sentiment, and weaker than expected UK data last week also helped GBPUSD move lower. The Pound found no respite yesterday with further concerns over the domestic outlook and vulnerable risk conditions.
EUR/USD is also correcting lower, breaching the 1.0700 mark could trigger a fall to 2020’s low of 1.0635.
Concerns persist over an extended conflict in Ukraine with Russia’s warning to the US over providing weapons to Ukraine also significant in increasing investor concerns, especially with Foreign Minister Lavrov’s warning over the potential use of nuclear weapons also a significant factor.
Sterling has gained ground against the Euro this morning, trading back above 1.1900 but the UK CBI industrial trends index dipped to 14 for April from 26 previously, well below market expectations. Today’s data highlights are US-focused; durable goods (March) and consumer confidence (April).