- Sterling weak on growing no-deal Brexit fears.
- Low volume markets can still be highly volatile.
The New DailyFX Third Quarter Forecasts are now live including a fresh look at GBP.
IG Sentiment Data show of traders are 72% net-long of GBPUSD, a bearish contrarian indicator.See how daily and weekly moves can change sentiment on the pair.
UK Asset Markets Under Pressure, Sterling Buckles
GBPUSD is back below 1.3000 and currently trades at an eleven-month low after UK international trade secretary Liam Fox said that there was now a 60-40 chance of a no-deal Brexit. The remark, made over the weekend fed into the pair at the off on Monday morning, while cable weakened further as the US dollar strengthened during the session. The UK data calendar is bare with only provisional Q2 GDP on Friday, leaving Sterling currently at the mercy of bearish speculators.
The FTSE broke its negative correlation with GBPUSD – with both asset classes registering losses – although support is close by on the chart. And EURGBP continues to trend gently higher but will remain rangebound until a deal/no-deal Brexit is announced.
GBPUSD Daily Price Chart (July 2017 – August 6, 2018)
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--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
