Morning all
TGIF!
Normally a recovery starts on a Monday, however it appears today is the day. The usual format of GBP, EUR and USD sections will resume next week.
GBP
Very rarely do I put my neck on the line but we have reached the bottom and the rally North has commenced. If you have USD or EUR to sell against GBP, do it today. Why?
The Recovery from the significant lows reached on Monday will be helped by data showing the UK economy grew in the second quarter, defying expectations for a decline. In addition a strong recovery yesterday off the BoE intervention earlier in the week has really started the process of securing the footing for GBP as the year unfolds. GBP’s rebound suggests it was holding a great deal of risk premium associated with these bond market stresses.
Expect some volatility today due to end of month flows with traders crystalising profits (or probably losses!) for the month and buyers/sellers like yourself dipping your toe in the market.
Sigh of relief!
Looking forward to hearing from you this morning