GBPUSD claimed a 13-month high yesterday and EURUSD a fresh 9-month high as the USD selling trend continued. However it's worth noting that relatively speaking, EURUSD is looking particularly overbought considering how much it's gained in a relatively short space of time, thus suggesting we could see a pullback in the pair.
*Daily move - against G10 rates at 7:30am, 21.08.24
** Indicative rates - interbank rates at 7:30am, 21.08.24
The markets continue to be in this USD selling frame of mind with the USD index now at its lowest since December 2023. A lot of market chatter seems to suggest that this bout of USD selling could well continue. However, as noted above, USD does look relatively oversold given the extent of the losses in such a space of time. It's also worth noting that equity markets have clawed back much of their recent losses, suggesting that perhaps the recent appetite for risk could dwindle as well. Today's focus falls on the Fed minutes in the evening.
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