Seeking resumed services…
Wow, what a choppy week last week. Let’s talk about that GBP/EUR movement during mid-week – we surged earlier in the week to present new GBP/EUR highs and this looked to form part of the overall upward trend in this currency pair. However, between economic data and talks from various European gentlemen we saw the EUR surge and push us back under 1.4000 for sessions later in the week.
And what about that GBP/USD? Well, that was a similarly choppy story, except in this case the trend did stay on course for the currency pair. We are watching GBP retreat under the 1.4800 mark now and so far, during European trading hours, we haven’t really seen any stabilization and USD continues to gently strengthen.
And so, to this week. When we review the factors still in play, we can’t really get away from this Greek/Euro story so that will continue to unravel. The next update will be from Mario Draghi later today. The GBP/EUR markets have settled a little now and I will be very interested to see if we can recover the overall upward trend that we have seen in recent weeks.
In general, a quieter day today for news. As I mentioned before, Draghi will talk later on and that is likely to have an effect on markets. That aside, we have some Industrial Production figures from the USA – forecast to remain flat month on month. We see the States also go to a ‘bake sale’ as they raise capital from three and six month Bill Auctions and really, that’s about all. So, in the absence of significant extraneous events, maybe normal services will resume today.