Dip & Turn in The FX Markets

Rally finally out out steam now we’ve hit the end of the week..

GBP

First loss of the week against the majors in nearly two weeks – we can all breathe now and take stock! Normally when we see a slight retrace in the markets it is because the spending spree selling your GBP (both on Amazon and with 1FX) has petered off this week and thus a correctional dip has ensued. As per yesterdays blog, we believe that there isn’t much left on the upside, with far more downside risk should Boris wobble in anyway over the weekend.

EUR

However, strategists at Citibank retain a constructive stance on GBP/EUR.

“The Covid divergence narrative between the UK and Europe has been one reason behind recent GBP outperformance. While the narrative now looks increasingly priced in recent days after PM Johnson unveiled the national reopening plan, there could still be further room to run,”

Kurran Tailor, analyst at Citibank

Let’s see…your thoughts?

USD

This really is it for GBPUSD. We are now trading under the psychologival level of 1.40 and will probably close under it for the weekend.

Talking of which, have a good one!

Picture taken by Charlie Wilkinson, flying a G2 over the River Deben

(Any pictures you’d like featured next week with a shout out, please send over this weekend 😊 )