Spanish assets under pressure on Catalonia independence rumours; GBP rebounds on decent economic reports; gold remains well supported despite falling 5% from last month’s highs; FOMC speeches eyed after bank holiday weekend.
The pound has stormed back to life at the start of this week, rising from a low of 1.3030 to a high so far of 1.3200 against the dollar. Its rebound comes after a sharp drop at the end of last week, which ensured of the GBP/USD’s third-down close in as many weeks.
The Euro came under pressure early Monday, falling more than 0.4% against the USD after preliminary results from the weekend’s Catalonia referendum showed that 90% of Catalans are in favor of independence.
The S&P 500 hit a new record high on Wednesday, while Treasuries continued to sell off after President Trump announced the tax plan framework, giving the dollar another boost against its major counterparts.