ForexLive European FX news wrap: Dollar continues renewed strength, sterling gains some ground ahead of BOE

Author: Justin Low | Category: News

Forex news from the European trading session - 8 February 2018

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There wasn't all too much happening the FX space, as the mixed theme early in the Asian session developed into broad dollar strength. Investors in Europe are trying to weigh the effects of higher yields, and one of it seems to be a favourable return to the greenback - at least for now.

On the equities front, Asian equities performed rather decently but once again Chinese stocks slumped and European stocks are growing worser as the day goes by as well. The German DAX is now down by 1.3% and Eurostoxx index is down by 1.1%, near the lows for the day.

Sentiment remains fragile and safe haven currencies caught a bid early on, but eventually remain mixed alongside other major currencies as we head into European mid-day.

The more notable action point was in sterling, where we saw a tale of two halves for the GBP. It started off on a softer note, with cable falling to a low of 1.3846 as the dollar gained strength during the session, but as we head into the BOE decision in the next 15 minutes or so, sterling is looking rather perky and cable climbed to a high of 1.3901 - with expectations of an upgrade towards growth forecasts being one of the reasons.

Good two-way action still to be had overall, so let's see what US markets will bring later on in the day.