- UK jobs, wages and inflation data may underpin a weak Sterling complex.
- Brexit discussions re-start on Thursday – will tensions ease?
The DailyFX Third Quarter Forecasts are now live including a fresh look at GBP.
IG Sentiment Data show of traders are 74.4% net-long of GBPUSD, a bearish contrarian indicator.See how daily and weekly moves can change sentiment on the pair.
Sterling Rattled by King Dollar, Risk Sentiment Wanes on Turkey
Sterling is trading below 1.2800 against a super-strong US dollar and needs a dose of good news to brake the fall. UK inflation, jobs and wages data – all expected close to last month’s prints – are unlikely to aid Sterling but Thursday’s Brexit talks may throw up some market moving news, so traders need to be attentive to market headlines.
Market sentiment remains negative due to the ongoing currency turmoil in Turkey which is helping the US dollar gain strength instead of other traditional safe-havens, notably gold.
GBPUSD continues to trade below 1.2800 and may fall further with the June 21, 2017 swing-low at 1.25891 the next target – support at 1.27738 has already been broken and closed below. The market looks oversold – RSI indicator – and any good news from the EU/UK talks could see the pair trade up towards 1.29575.
If you missed this webinar and would like to know about future events, you can see the full DailyFX webinar schedule here.
DailyFX has a vast amount of updated resources to help traders make more informed decisions. These include a fully updated Economic Calendar, Educational and Trading Guides and the constantly updated IG Client Sentiment Indicator.
--- Written by Nick Cawley, Analyst
To contact Nick, email him at nicholas.cawley@ig.com
Follow Nick on Twitter @nickcawley1
