GBP/USD Update

The current target is 1.8650 (adjusted). The Pound was one of the day’s worst performers and seems genuinely to have caught market participants by surprise.

Interestingly, in contrast to the EUR/USD, market commentators have linked the weakness to a similar move in the oil-price. The prospect of the UK’s Labour Party ousting its leader, PM Tony Blair, also featured in market discussions.

Formerly, threats to his leadership have not been market-movers. This, of course, causes us to
question the longevity of the new trend, eventhough the target is not too ambitious.