Foreign Exchange Update 17th August 2020
EUR/USD has bounced back from its earlier lows and is trading at around 1.1850 at the start of the new week, as fresh U.S.-Sino trade tensions boost demand for the greenback. Although the technical setup for the pair is improving as it looks to conclude five consecutive days of gains if it closes in the green on Monday, the outlook may not be so stable, ahead of a publication from the Federal Reserve regarding its July meeting.
Pound-to-Dollar is trading close to 1.3100 at the start of the new week, amid Bank of England Chief Economist Haldane’s bullish economic forecast and a wider rebound in the U.S. dollar. However, the British currency is seen relatively flat as it faces a volatile week, ahead of key Brexit talks on Tuesday. Flash PMI data due at the end of the week could also rattle the shared currency.
GBP/EUR is trading at a spot rate of 1.1045. The Sterling kicked off the new week at a weaker rate against its American and European counterparts. The Pound-to-Euro exchange rate is currently seen at 1.1038, falling 0.10% from earlier in the day as the British currency builds on last week’s 0.25% loss.
Elsewhere, the price of gold stood at $1950 at the start of the new week, in line with a consolidating market, following sharp losses seen the previous week.