Talking Points:
- Big FX moves in the overnight session as the US Dollar[1] broke out of the resistance that’s been in play over the past two months, and this helped EUR/USD[2] to trade below the 1.1500 level for the first time in over a year. The driver appears to be emanating from Turkey, as concerns around financial conditions there have started to worry the ECB about exposure to the situation in European banks. Contagion in the European banking system is something that has long been a concern, and it appears that theme is now coming back into the spotlight.
- The British Pound[3] continues to meltdown, albeit for different reasons. We even had a couple of flickers of positive news earlier this morning around a better-than-expected Q2 GDP print along with some comments from UK Finance Minister, Phillip Hammond, that he felt the chances are that the UK gets a Brexit-deal. Nonetheless, sellers remain firmly in control of the currency as GBP/USD[4] has now established a fresh yearly low.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or the Euro[6] are available from the DailyFX Trading Guides page[7]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[8]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[9].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[10].
