⏰Sterling Sees Most Gains, Higher Range During EU Session: Cable FX Macro
- Rosbel Durán
- Aug 19
- 2 min read
The range and average performance metrics outlined below utilize the dollar as the baseline currency for comparison. Over the past ten days, mixed trading patterns for the greenback have been observed, indicating a lack of a consistent directional trend. However, it is noteworthy that the majority of G10 currencies have experienced losses in the short-term, particularly during the trading sessions in North America (NA) and Europe (EU). This trend suggests that market participants may be reacting to various economic indicators and geopolitical events that have influenced investor sentiment, leading to a temporary weakening of these currencies against the dollar.
Among the G10 currencies, sterling has emerged as a clear outperformer, showcasing significant strength against the dollar. Most of the gains for the British pound (GBP) against the dollar (USD) are recorded during the EU trading session, highlighting the importance of this time frame for traders. The average 10-day range in GBP/USD is notably higher during the European trading hours compared to other times of the day, indicating increased volatility and trading activity. This heightened activity may be attributed to a variety of factors, including the release of economic data, central bank announcements, and market speculation, all of which tend to be more pronounced during the EU session.
In contrast, losses against the dollar observed in the earlier trading sessions appear to be reversing as the Asia-Pacific (AsiaPac) market opens. During this period, all G10 currencies are posting gains against the dollar, suggesting a potential shift in market dynamics. This phenomenon aligns with the emerging theme of "fade the Asian session," where traders anticipate a rebound or correction in currency values following a period of decline. This strategy implies that market participants are capitalizing on the opportunity to buy into currencies that may have been oversold during the previous sessions, particularly in light of the Asian markets' tendency to react positively to global economic news and developments.
Comments