Recent trade tensions and stock prices falling by six percent in merely two trading days have generated much uncertainty surrounding the US dollar. This has been observed with the recent decline in the dollar market prices.
Individuals are looking to invest their funds in other safe haven goods and currencies. Noted with the huge upward run gold has been having. With the euro arguably seen as the global secondary reserve currency, individuals are pouring their funds into the euro, driving the currencies market value upward. The euro has strengthened against the dollar and significantly against the pound. With the euro crossing highs from May 2017, at the 92 cent mark.
In addition to Boris Johnson making it clear that he is looking for a hard Brexit on 31st October, deal or no deal. Creating mass uncertainty with the pound. German factory orders are also up so good economic data coming from Europe aiding in the upward push of the euro.
Analysis:
- EUR/GBP crossing the 92 cent level.
- Key support at 91 cent mark.
- With high at the 93 cent level.
- Strong upward momentum looking to push further. We could see a push back up or fill the 2016 wick at the 96 cent mark.
