The pair settled in minor positive territory, benefiting from a touted short-squeeze ahead of the key elections in the US, as well as the looming ECB monetary policy meeting on Thursday. Macro data, which only underpinned the dire outlook for the joint block failed to have a meaningful impact on investor sentiment and instead, the release of less than impressive Industrial and Manufacturing Production data from the UK acted as a support for the pair.
The pair settled the session essentially flat, as market focus remained firmly on the latest Presidential elections in the US, with markets “hoping” that the next administration will take on a more proactive approach on healing the damaged economy. Although the pair was not particularly reactive to the release of the latest Industrial and Manufacturing Production reports, underperformance was evident when looking at various crosses, especially against the EUR, which saw the cross break back above the 0.8000 level.
The pair settled flat, as market participants refrained from placing directional bets ahead of the key risk event this week – US elections. There was also a distinct lack of Japan related macro economic news-flow. Given the light trading conditions, there is a risk that the pair may react “violently” to any pertinent events and break-out of its range.