I know the EURGBP has a good reason, following the logic: Buy the strong (Euro) and short the weak (Pound). But the weekly chart is really scary for a long position ... really scary!
FX: Winners and losers in the weak euro story
Some positive signals from July retail sales and New York Fed Empire index helped to partly cast out fears of a US recession and stabilise equity markets yesterday. As highlighted by our US economist, we are reluctant to attach a high probability of an imminent recession in the US, despite the recent inversion in the yield curve. On the trade side, President Trump confirmed that he has a call scheduled “very soon” with Chinese leader Xi Jinping. Despite the two parties still appearing quite far from reaching a trade deal, the news may prompt further stabilisation in risk sentiment today. In turn, we expect a ... (full story)