Comments and reports on a daily basis from the EU/UK trade talks continue to influence daily swings in Sterling. Having seen technical support levels of USD 1.3300 & the EUR 1.1100 zone traded since Friday, the Pound opens just shy of USD 1.3400 & EUR 1.1200 as market sentiment still favours a trade deal being ratified by the two sides.
The Euro traded on Monday at the psychological $1.2000 amid extended general US Dollar weakness. Not surprisingly, the Euro ended weaker as stocks eased on the last day of the month, closing below $1.1950. Euro buyers returned in Asia supported by indices trading higher again across the globe, less reason to hold the safe haven Dollar.
Weaker US bond yields, rising stocks and extended Covid support for the economy from the Federal Reserve gives reason for investors to sell Dollars on any sign of weakness. The Dollar remains in its medium term downtrend. November PMI’s (purchasing managers index) for the manufacturing sector are due for release from both sides of the Atlantic today.