Tag Archives: GBP/USD

Daily FX Update

USD TRADING AT AVERAGE YTD LEVEL – USD is weak but immaterially so; the Fed is in blackout, there is no data today, accordingly markets are quiet.

Major Overnight Headlines • Trade-weighted GBP rises to 8-month high in London; UK unemployment rate falls to 7.7% in July

EUR – Lots of 2 way in eur yesterday without really much movement – rm and corp sellers but spec and model buyers kept us in a 30-70 range

(1,5728) The CABLE confirmed another strong closing even above 1,5720 supporting further strength.

Today’s highlights: – USDJPY maintains the break from its bullish “triangle” and we target 100.88 next, ahead of the 101.54/64 barrier.

EUR/USD now hanging around just below the 21-DMA, still initial resistance at $1.3285 and just above the weekly Feb 2013 res line at $1.3279.

Relevance Risks For Inflation The ECB will be looking at Wednesday’s German inflation releases with some degree of nervousness.

The NZD/USD’s probe back into the 80s continued overnight, fuelled by recovering risk appetite and improving sentiment towards the Chinese economy.

USD AND SAFE HAVENS WEAKEN ON RISK APPETITE – USD is weak ‐ global growth outlook improves & Syrian risk recedes.

EUR – So eur caught up yesterday as mkt cut long usd positions post payrols as we wait for the fed next week

(1,5704) The CABLE confirmed a strong closing last night at the resistance of the positive outside day supporting further strength.

The Dollar’s Taper Pace Friday’s payrolls release, while soft, was probably just enough to keep tapering on track.