- GBP/USD is down over 300 pips on the day.
- The risk-averse market setting offers a lift to the buck.
- Disappointing knowledge releases from the UK weigh closely on GBP.
Following a consolidation part throughout the Asian buying and selling hours, GBP/USD got here beneath heavy bearish stress and misplaced greater than 200 pips on the day. As of writing, the pair was buying and selling at its lowest stage since 1985 at 1.1045, down practically 2% every day.
Earlier within the day, the information from the UK revealed that the enterprise exercise within the non-public sector continued to contract in early September with the preliminary Composite PMI dropping to 48.4 from 49.6 in August. This studying got here in below the market expectation of 49.
Furthermore, the Confederation of British Industry’s newest Distributive Trades Survey revealed that the Retail Sales Balance plunged to -20 in September from +37 in August and fueled the GBP selloff.
In addition to dismal UK knowledge, the extreme flight to security offers a lift to the greenback and additional weighs on the pair. US inventory index futures had been final seen shedding between 1.3% and 1.6% on the day, suggesting that safe-haven flows are probably to proceed to dominate the monetary markets.
The US financial docket will function S&P Global’s Manufacturing and Services PMI experiences later within the day.
Technical ranges to look ahead to