In European trading on Thursday, the cross currency markets couldn’t get any traction. The British Pound and the Euro endured record duress against the U.S. Dollar. The GBP/USD currency pair continued to languish in 3rd straight session, below the 1.3400 level. Through the start of Asian trading hours it was trading closer to 1.3410, showing you just a bearish mood in traders that were out there.
At the same time, the EUR/USD cross deepened its bearish trend, heading towards 1.1450. As of Thursday morning, the two crossed at around 1.1465, showing continued stress in the Eurozone currency. Currency analysts say that the lack of a significant economic news story is probably keeping both currency pairs from moving. Their performance is stuck as a result.
The GBP/USD has largely defended those losses above 1.3400, but that comes amid renewed uncertainty weighing heavily on the British pound. Traders are determinedly watching economic indicators and geopolitical developments that would affect the Pound’s worth. As with the previous weakness, we need to take a deeper look at market sentiment as investors wait to see new data or news announcements.
Like the EUR/USD, which has fallen victim to this wave, trading lower. The recent movement of the Euro against the U.S. Dollar shows that this is a battle just for the Euro to gain some footing. This decline comes against a backdrop of mixed economic signals from Europe and continuing global market volatility.