After holding up above at 1.8400 during European trade U.S investor punished the sterling, falling to a low of 1.8285 in a very quick movement. A concern over the state of the UK economy continues to drive the negative sentiment against the GBP/USD with hedge fund being aggressive seller of late.
The Euro made substantial gain after jumping of the multi month lows of Tuesday. Hawkish comments made by several member of the ECB board tempered speculation of interest rates cuts before end of year; this strengthened the Euro, with surging oil prices also supporting the currency. German CPI figures showed a drop of -0.3 in August. Looking ahead German Unemployment Rate seen 7.8% forecast at -10k in August.
The U.S Dollar was on the back foot early day in the European session as commodities found and recent dollar gains were pared back. U.S durable goods came in higher then expected in July coming in at 1.3% compared to forecast of 1%, putting the dollar back in control.