Sterling takes a break after three-week rally

It’s been a sensational run for the pound over the past three weeks, culminating in a two-year high yesterday. Profit taking is the theme today with GBP/USD down 80 pips to 1.3174.

Kier Starmer yesterday highlighted ‘painful’ choices that need to be made in the October 30 budget and that could have put a chill into the pound but it’s mostly tracked the risk trade. Today the Nasdaq is down 1.2% on angst ahead of Nvidia’s earnings.

The US dollar is also broadly weaker as the ‘US exceptionalism’ theme comes under pressure on signs that Fed will ease even with solid GDP growth.

This article was written by Adam Button at www.forexlive.com.