INTERNATIONAL CURRENCY BUZZ :
- FOREX – Sterling at 7-week highs but rate hike uncertainty caps gains
- FOREX – AUD/USD rises off previous session’s 6-year trough
- FOREX – NZD/USD edges higher, recovers from China turmoil
The sterling remains on the positive footing vs. the dollar on Tuesday, lifting GBP/USD to the 1.5800 neighbourhood. The pair is advancing for the third consecutive week so far, propped up by expectations of a BoE rate hike sooner than market expectations, while on the other hand, investors continue to push back the timing of a rate hike by the Federal Reserve. Ahead in the session, US New Home Sales, Market’s Services PMI and Consumer Confidence will dictate the USD’s dynamics, while the most relevant release in the UK economy will come on Thursday with the flash Q2 GDP figures.
The EUR moved notably higher at the start of the week and in the process has taken out key levels against both the pound sterling and US dollar. The euro to dollar conversion hit a best of 1.1714 – levels not seen since January 2015. The euro to pound sterling exchange rate meanwhile hit a high at 0.7422. The UK currency has declined against the euro for a third consecutive week (the first time that has happened since March/April) and one consequence of this ongoing weakness is that it has broken down through its short-term uptrend (and 50-day moving average).
- BUY GBP/USD ABOVE 1.5720 TARGET 1.5740 1.5770 SL 15690
- SELL GBP/USD BELOW 1.5700 TARGET 1.5680 1.5650 SL 1.5730