Cable slips in early European trade, August 28

Cable slipped from 1.2270 to a low of 1.2155

The GBPUSD pair lost more than 100-pips in early European trading on Wednesday and expanded its sharp intraday pullback farther below the 1.2200 handle.

The UK parliament will return on September 3rd but are probably going to just remain in session for about a week before the following recess period kicks in until the Queen’s speech on October 14th. That tremendously restricts the timeline for parliament to stop a no-deal Brexit. Hence, the Sterling witnessed some aggressive selling on this news.

Also, the pair was additionally pressurized by a modest pickup in the USD demand. Regardless of extending of the US yield curve inversion, the USD stayed underpinned by the US President Donald Trump’s gentler tone against China on Tuesday.

Rose Alice

About: Rose Alice

Rose Alice has a long experience as a currency analyst with a deep knowledge of the relationship between macroeconomics and currencies fluctuation.