Global equity bulls were missing in action on Thursday, after weaker corporate earnings, soft economic data from China and heightened political drama in Spain encouraged investors to head to the sidelines.
After enjoying a 4-week rally, the dollar came under pressure last week, falling against most of its major peers, leaving many traders questioning whether the most recent bull run is over for the greenback.
Spanish assets under pressure on Catalonia independence rumours; GBP rebounds on decent economic reports; gold remains well supported despite falling 5% from last month’s highs; FOMC speeches eyed after bank holiday weekend.
The pound has stormed back to life at the start of this week, rising from a low of 1.3030 to a high so far of 1.3200 against the dollar. Its rebound comes after a sharp drop at the end of last week, which ensured of the GBP/USD’s third-down close in as many weeks.