EUR/GBP has settled above 0.87. Kit Juckes, Chief Global FX Strategist at Société Générale, believes that the pair could advance nicely towards the 0.90 level. Sterling unlikely to enjoy much more of a relief bounce.
“EUR/GBP has reversed the spike which we saw in late September but remains well above the post-Brexit average, and GBP/USD is even further above average than EUR/GBP. Both measures of volatility should fall further, as the pound settles down.”
“But with the economy surely already in recession and set to suffer from possibly even tighter fiscal policy, sterling is unlikely to enjoy much more of a relief bounce and over time, EUR/GBP is likely to meander slowly up to 0.90 or so.”
EUR/USD holds above 0.9850 after German IFO data
EUR/USD continues to trade above 0.9850 in the European session on Tuesday. The data from Germany showed that the IFO Expectations Index improved modestly to 75.6 in October from 75.3 and helped the shared currency show some resilience ahead of US data.
GBP/USD recaptures 1.1300 amid UK politics, US data eyed
GBP/USD is resuming advance above 1.1300 amid a broad US dollar rebound and mixed mood. Investors remain hopeful that the new UK PM Rishi Sunak will bring stability to the financial markets. Focus shifts to the US data.
DXY pares recent losses
Gold price stays defensive after reversing from 21-DMA. DXY picks up bids to reverse early Asian session losses amid mixed concerns. XAU/USD may remain sidelined ahead of US CB Consumer Confidence, Q3 GDP.
Interesting Bitcoin seasonal pattern ahead
The seasonal pattern in BTC is interesting when you consider how closely it matched the seasonal pattern in stocks with a strong Q4. Does this mean that BTC is worth buying?