The market sell off for GBP continues.
Should we be worried? The answer is....probably not. At this stage it looks like a technical correction combined with a risk off approach bolstering the Dollar.
The Pound price has broken through a couple of technical levels to the downside versus the Euro so there is every chance that the short term direction will remain down. However the longer term uptrend remains in place hence our belief this is a technical correction at this stage.
The same can be said versus the Dollar, however this downtrend is exacerbated by the aforementioned risk off position.
Retail Sales from the UK reported earlier this morning haven’t helped things either with year on year growth expected at 6% but came in at 2.4%, and a contraction month on month when modest growth was expected.
Looking ahead there’s not much in the pipeline going into the weekend with scheduled news. However there is services sector data out from Europe and the UK at breakfast time on Monday.
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: 08:00 (Monday) Markit Services PMI
UK: 08:30 (Monday) Markit Services PMI