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Aug 31 - 11:55 AM

COMMENT - EUR/USD Helps Sterling Overcome Bank Holiday Torpor

By Paul Spirgel  —  Aug 31 - 11:10 AM

GBP/USD drifted higher, overcoming earlier bank-holiday lethargy and an early-U.S.
slide to 1.3309 as the dollar slipped versus EUR/USD, leaving sterling bulls to plot their next moves, which might include an assault on last year's post-UK election peak.

Broad dollar weakness after last week's Fed shift to average inflation targeting and an employment focus refueled sterling's summer rally.

Despite post-Asia GBP/USD weakness on holiday liquidity, GBP/USD was still able to shrug off Brexit fearsnFWN2FU182, as it has since the pound's March lows by 1.1413 to Monday's high 1.3370.

Rising UK COVID cases and talk of tax levies nL8N2FW03T are risks to sterling bulls' ability to follow EUR/USD but are currently not constraining cable.

GBP/USD bulls remain in control above the 10-day moving average by 1.3196 and the 21-DMA at 1.3132, with resistance at 1.3422, the Dec.
16 high, and the Dec.
13 post-election flash peak at 1.3516 capping.
For more click on FXBUZ


GBP Chart: Click here

Source:
Refinitiv IFR Research/Market Commentary

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