Third day of GBP losses as Cable targets 1.2000
|USD lighting up again ahead of Trump address. Press conference jitters swiftly quashed as stocks and commodities also buoyant.
Into the London close, we see the USD staying bid as the market seems to have relaxed concerns over what may or may not transpire in what is an unscripted event. GBP is where the bulk of buying has been going through, with the earlier weakness in the UK trade data along with construction output set off another round of selling, which was later exacerbated by comments from BoE gov Carney responding to comments on inequality emanating from a low rate environment. Taking out 1.2100, we saw some strong support holding the pair up ahead of previous lows ahead of 1.2050, but this have also been removed to put the 1.2000 level now in the line of fire. EUR/GBP gains have been limited, if not contained, and this has been engineered by a lower EUR/USD rate pressed back down into the mid 1.0400’s. USD/JPY gains back into the upper 116.00’s suggest the market has little to fear from the upcoming risk ahead, with stocks and commodities also buoyant in the run up to the first public address of 2017 from the president elect. AUD, NZD and CAD have been resilient to today’s USD moves – to a degree but this may change in the session ahead if Trumps comments are not well received by Wall Street.
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