On Monday (Oct 24), the sub-session, / US fell sharply, temporarily traded at 1.1323, up 0.09%.
The weakness of the real economy was underlined on Friday when retail sales fell 1.4% in September on a quarterly basis, far more than market expectations of a 0.5% drop.
And once again, a gloomy economic outlook.
For the moment, financial markets are constantly at the mercy of British political drama;
Not only that, but inflation remains at its highest level in more than 40 years, consumer confidence is low and Britain’s policy tightening is precarious.
Have repeatedly sent markets into a tailspin.
Now we can only bet on whether the Bank of England will fill the threat to the economy by pushing inflation even higher.
Markets are pricing in further aggressive tightening rather than soft rate rises from the Bank of England;
That would at least prevent the pound from getting into trouble again.
GBP/remained defensive around the one-month support line after reversing from its highest level in a week to 1.1300 early in Europe on Monday.
The cable pair reversed from the 50-DMA, accompanied by a pullback to the upward-sloping support line from September 28th.
