The pound enjoy some relief this morning due to a decline in gilt yields following chancellor Jeremy Hunt’s scramble to unwind his short-lived predecessor’s regrettable legacy.
But despite some 20 pips being added to the GBP/USD pair in the early hours, a retreat seems to be forming on the one-hour chart.
Cable is currently changing hands at US$1.135, but we could be in for a volatile trading session as traders look towards tomorrow’s UK inflation data.
Cable is showing volatility in Tuesday’s early session – Source: capital.com
The euro is looking upbeat against the US dollar, at least relative to recent performance, having reached a 12-day high of US$0.985.
The EUR/GBP pair is looking particularly strong and it could be likely to break above the 87p barrier throughout the day’s trading session.
Once again, the Japanese yen fell against the US dollar and is currently changing hands at 149.9.
With the USD/JPY pair at its highest point in decades, speculation of a Bank of Japan intervention continues.
The Australian dollar is changing hands for US$0.63 against the US dollar while the AUD/EUR pair currently sits at €0.64.