GBPUSD Bounces Off Key Trendline Support from Flash Crash Low - US Market Open

EUR: Amid the sizeable decline in inflation expectations, traders will be paying close attention to commentary from ECBs Draghi, who may provide fresh policy signals in order to address the plummet in inflation expectations. The Euro is slightly firmer this morning, with 1.12 holding in EURUSD, while EURGBP made another push above 0.8900. Of note, large option expiries between 1.12 and 1.13 could keep EURUSD within a relatively tight range ahead of the Fed meeting.

GBP: Initial weakness in the Pound had been curbed having bounced off the trendline support from the GBP flash crash low, while the slight pullback in the USD index had also aided the currency to test the 1.26 handle. Elsewhere, the BoE are scheduled to release their latest monetary policy outlook, however, while there has been increased hawkish rhetoric from several members, the central bank remains tight lipped by the ongoing Brexit uncertainty.

Source: DailyFX, DTCC

Source: DailyFX, Thomson Reuters

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