8 Aug 2013
GBP/USD holding onto the 1.5500 handle
FXstreet.com (Barcelona) - There is little change in the pair from the European shift.
There is also little data on the cards today which the market will pay much attention to in respect of cable other than the Initial Jobless Claims (July 27) that printed 333k vs 336k consensus and 328k previous. There was very little reaction. The market is still digesting the Inflation report and indeed it seems we will have to wait for the BoE minutes next for more clarification in respect to the guidance on interest rates. As a result of the report, markets now understand unemployment at 7% is the target and threshold where base rates might be considered again. Until then, QE could be extended should the economic conditions require it, but for the time being, the UK economy is set to improve without it at the slowest rate in history and rates are expected to remain on hold for an extended period of time. “What we have (a promise to keep rates here at least until unemployment falls to 7%, subject to inflation not being above 2½%) risks being undone by a combination of weak growth, falling unemployment and stubbornly high inflation. What then?” – said Kit Juckes, Global Head of FX Strategy, Societe Generale.
GBP/USD testing 1.5500 handle
GBP/USD has been offered through the 1.5500 handle in London markets. The 20 dma is 1.5288, 50 dma 1.5330, 200 dma 1.5536. RSI (9) reads 66.22. Supports are ascending from 1.5205, 1.5259, 1.5310, 1.5375, and 1.5490. Spot I currently testing the 1.5500 handle and resistances come in at 1.5534, 1.5565, 1.5603 and 1.5680.
There is also little data on the cards today which the market will pay much attention to in respect of cable other than the Initial Jobless Claims (July 27) that printed 333k vs 336k consensus and 328k previous. There was very little reaction. The market is still digesting the Inflation report and indeed it seems we will have to wait for the BoE minutes next for more clarification in respect to the guidance on interest rates. As a result of the report, markets now understand unemployment at 7% is the target and threshold where base rates might be considered again. Until then, QE could be extended should the economic conditions require it, but for the time being, the UK economy is set to improve without it at the slowest rate in history and rates are expected to remain on hold for an extended period of time. “What we have (a promise to keep rates here at least until unemployment falls to 7%, subject to inflation not being above 2½%) risks being undone by a combination of weak growth, falling unemployment and stubbornly high inflation. What then?” – said Kit Juckes, Global Head of FX Strategy, Societe Generale.
GBP/USD testing 1.5500 handle
GBP/USD has been offered through the 1.5500 handle in London markets. The 20 dma is 1.5288, 50 dma 1.5330, 200 dma 1.5536. RSI (9) reads 66.22. Supports are ascending from 1.5205, 1.5259, 1.5310, 1.5375, and 1.5490. Spot I currently testing the 1.5500 handle and resistances come in at 1.5534, 1.5565, 1.5603 and 1.5680.