Currently a weak start to the day, but the pound managed to stay above 1.26 against the dollar after rising at the end of US trade.
Markets remain alert and cautious for now, with bond traders playing catch-up amid undecided risk-tones following the US-China trade truce last week.
Looking ahead, there are a number of economic news on the calendar, but it will all come back to cash flow and media news. It is important to note that again, we have several Fed speakers who can cross out the topic of the future of monetary policy and create short-term volatility.
I expect that during the first hours of the session, caution will prevail, which means a sharply higher index and consolidation of hedging instruments – yen, gold and ETFs. GBP / USD is on a diagonal resistance and after yesterday’s pin bar is above 1.26 and 200 SMA, which will surely give buyers confidence that they will be able to overcome the area.
Trader Aleksandar Kumanov