The dollar slid once more against sterling and the euro in a move that is quickly becoming a trend. It is difficult to pinpoint the exact reasons for the weakening because while there has been some encouraging Brexit news for the UK and positive economic news for the eurozone, that doesn’t explain the whole picture. The worry will be that once a sustained period of weakness happens it can be difficult stop it. Definitely something to keep our eyes on for the next few days and weeks.
An article in Bloomberg yesterday showed that JP Morgan appear to be resolute in their belief that by March 2018, the pound will fall to $1.30. This really does help demonstrate how forecasts can’t ever be relied upon – the major banks can’t agree on future GBP/USD movements so what chance do the rest of us have? Do download your copy of our latest quarterly currency forecasts to see the disparities between the experts.
Today is another quiet one for US economic data and so attention will no doubt be focused elsewhere. Having said this, there is always the possibility that Trump will do or say something that steals the headlines, but let’s wait and see.
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