Forex Analysis

Keep Calm and Carry On: Stay long GBP

There have been two interesting developments in sterling lately.

The USD has strengthened against the G10 commodity bloc.

US retail sales for September is due for release and we expect growth in retail sales to

Bonds rallied hard and curves bull-flattened on both sides of the Atlantic,

The pair started this morning’s session at $0.8713 after it traded a $0.8694 to $0.8754 range during the US session last night.

The pair started in Asia at $1.2658 after last night’s $1.2679 to $1.2741 range during the US hours.

The pair closed in NY Tuesday at $1.5904 after sterling has lost ground through the day,

The JPY started at Y107.05 against the US dollar and at Y135.51 vs the euro this morning.

A big range up attempt in the Euro overnight was clearly rejected by yet another sweep of patently discouraging data points.

Like the Euro, the Swiss has attempted to rally but that effort was rejected and

A pattern of higher lows, a lack of definitive alternatives and residual support from Chinese export data overthe weekend,

A sweep of headlines overnight extends the fear of global slowing and leaves the Dollar with an edge.