Weekly Briefing- 10/07/2020
Good Morning All,
• Sterling ended up virtually unchanged yesterday, having traded up as high as $1.2670 at one point during the morning. This was caused by the market warming to Chancellor Sunak’s package of stimulus measures and encouraging sounds coming from the Brexit talks.
• US jobless claims were better than expected, but the US equity markets turned tail in the afternoon due to increasing Covid-19 concerns. As they did, sterling gave back some of its gains, ending the day unchanged against both the dollar and the euro.
• Both sterling and the euro are trading at or around their 200 day moving averages which if they break on the upside will be key buying signals for technical traders.
• Away from sterling, Croatia and Bulgaria are set to get approval to enter ERM-2, a preliminary step toward joining the euro. They would be the first new members since 2015 and a decision is expected over the weekend.
• The pound has enjoyed its best week for nearly a month, but overnight is lower as the markets adopt a more risk-averse tone. Today is a very quiet day on the data front and unless we get some positive news from the Brexit talks, sterling may well continue edging back down as traders look to book profits ahead of the weekend.
Support and resistance levels
GBP/USD Support 1.2512 Resistance 1.2651
EUR/USD Support 1.1222 Resistance 1.1402
GBP/EUR Support 1.1086 Resistance 1.1265
On This Day…
On this day in 1856 Nikola Tesla, the Serbian-American inventor was born. Considered by many as America’s greatest electrical engineer, he is credited with coming up with the idea for radio, and after whom the tesla (a unit of magnetic flux density) is named. His work fell into relative obscurity following his death in 1943, however, during the 1990s there was a resurgence in popular interest in Tesla.
We hope you had a good week and will have an even better weekend!