USD – The dollar slipped to a one-month low on Thursday, a day after the Federal Reserve’s reassurance that interest rate hikes remain distant helped put the brakes on the US currency, which has been rallying for a month now.
Monex Europe added that, “with the dollar already under pressure today as the risk environment stabilizes and markets embrace the dovish rhetoric from Fed Chair Powell yesterday, the near 2 percentage point miss in Q2 GDP did little to relieve the greenback.”
GBP – The pound hit fresh monthly highs on Thursday, supported by both the weaker dollar and the ongoing slowdown in UK coronavirus cases.
ING argues that “Sterling continues to reap the benefits of the slowdown in COVID-19 cases, in turn reversing the prior market concerns about another meaningful wave. This means a further adjustment in the GBP speculative positioning lower is unlikely. Rather, there is a room to re-build sterling longs after their meaningful decline over the past few months.”
Monex Europe added that, “with the dollar already under pressure today as the risk environment stabilizes and markets embrace the dovish rhetoric from Fed Chair Powell yesterday, the near 2 percentage point miss in Q2 GDP did little to relieve the greenback.”
GBP – The pound hit fresh monthly highs on Thursday, supported by both the weaker dollar and the ongoing slowdown in UK coronavirus cases.
ING argues that “Sterling continues to reap the benefits of the slowdown in COVID-19 cases, in turn reversing the prior market concerns about another meaningful wave. This means a further adjustment in the GBP speculative positioning lower is unlikely. Rather, there is a room to re-build sterling longs after their meaningful decline over the past few months.”