The big news today is the GBP/EUR rate which has taken a bit of a pasting in the last 24 hours. Having breached support there will be a lot of focus on whether the breach holds or we see a quick recovery back to the bottom of the previous range. The next 24 hours will be very telling.
It was a similar story with the Dollar versus the Pound although there has been a small recovery in that rate. However the Pound is still hovering around 2 year lows versus the Greenback.
It's almost certainly an upshot of the UK political situation that's causing the Pound weakness. Potential trade wars with the EU are now being touted alongside the potential of another Scottish independence referendum.
We will be keeping a close eye on any recovery if it happens.
However all eyes are now fixed on interest rate decisions again. The FED releases theirs later where analysts are expecting them to raise rates by 0.5% to 1.5%. Anything outside of that will cause volatility. The UK has their interest rate decision out tomorrow.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
EUR: 10:00 Trade balance
US: 13:30 Retail Sales
US: 19:00 FED Interest Rate Decision