EUR 9.24 For Business Accounts Only

The Morning Track clarity-4

- The Morning Track – Clarity? by Bob Savage
http://track.com/articles/the-morning-track-clarity-4/

The end of the correction? That is the key for trading today with the Trump press conference seen as a key event to bring some clarity to policy uncertainty. The focus on repealing the affordable care act, hearings on the new cabinet and talk of tax reforms will be balanced against trade concerns with Mexico and China in the spotlight. The 2 week hiatus from the “Trumpflation” trade may end accordingly. But overnight the focus was on the data with the UK IP good but not good enough to make up for a larger trade deficit. As GBP falls, so too does the EUR, and we are back to a strong USD trend even before Trump tweets or talks. We also await the PM May questioning from Parliament today with Brexit front and center. We also get BOE Carney speaking adding to GBP noise. Throw in the first of many Italian constitutional court rulings – this one on labor market changes from the former Renzi government and you have the EUR mattering again to GBP movements. The price ac
tion was USD wobbly in Asia, bid in Europe and expecting great things into the US open. No one is quite sure that the correction is really over but the technical and fundamental set ups matter less than the bigger mood and that has been the risk of trading politics since Brexit. This leaves the market keenly focused on the GBP still with 1.22 needed to suggest we are stuck in the purgatory of corrections.