INTERNATIONAL CURRENCY BUZZ :
Forex – Sterling regains some ground after Brexit shock
- Forex -Dollar slides as markets begin to recover from Brexit
- Forex – Aussie, kiwi move higher as sentiment improves
EURUSD formed a spinning bottom yesterday seeking support at 1.10 with the price action seeing a bullish follow through in early Asian trading today. The gains came after markets started pricing a Fed rate cut this year following the Brexit verdict. The Fed funds futures rate is now surprisingly pricing in a 17% rate cut by September, increasing from 7% on Friday. From a technical perspective, the euro has managed to establish support near 1.10 – 1.0985 support level and in the interim, price action remains caught above this support and below 1.1143 – 1.115 resistance levels.
The pound pushed higher on Tuesday as investor confidence began to return to markets after recent sharp declines in the wake of the shock U.K. vote to leave the European Union last week.GBP/USD was up 0.84% at 1.3337, coming off the 31-year low of 1.3122 set on Monday, a level not seen since 1985. The two-day selloff in sterling seen on Friday and Monday was the largest in recent history.Global stock markets suffered the largest two-day rout ever, as a wave of selling wiped around $3 trillion from markets.Ratings agencies Standard & Poor’s and Fitch Ratings both downgraded their credit ratings for the U.K. on Monday and warned that further cuts are possible.
- BUY GBP/USD ABOVE 1.3370 TGT 1.3390 1.3420 SL 1.3340
- SELL GBP/USD BELOW 1.3258 TGT 1.3238 1.3208 SL 1.3288