INTERNATIONAL CURRENCY BUZZ :
- FOREX – Kiwi down as retail sales disappoint in Q2, China ripples eyed
- FOREX – Dollar edges higher ahead of U.S. data
- FOREX – EUR/USD almost unchanged ahead of E.Z. data
The pound held steady against the U.S. dollar in quiet trade on Friday, as expectations for inter- est rate hikes by both the Federal Reserve and the Bank of England continued to lend equal support to the two currencies. The bid tone is now gathering pace around the sterling on Friday, with GBP/US advancing to session tops near 1.5630. The pair is extending its consolidative pattern at the end of the week, navigating the upper band of the weekly range in the low- 1.5600s and coming down from recent tops in the critical resistance at 1.5650. Next of relevance in the pair will come from the US docket, where Producer Prices, the Reuters/Michigan index and Industrial Production area all due later.
The Euro-Zone’s 2Q Gross Domestic Product (GDP) report may boost the appeal of the single currency and spur fresh monthly highs in EUR/USD as the growth rate is expected to increase 1.3% following the 1.0% expansion during the first three-months of 2015. Despite the European Central Bank’s (ECB) pledge to ‘fully implement’ its quantitative easing (QE) program, data prints pointing to a stronger recovery may encourage the Governing Council to adopt an improved outlook for the region, and the board remains at risk of facing a ‘taper tantrum’ over the medium-term as central bank President Mario Draghi remains confident in achieving the one and only mandate for stability.
- BUY GBP/USD ABOVE 1.5660 TARGET 1.5680 1.5710 SL 1.5630
- SELL GBP/USD BELOW 1.5590 TARGET 1.5570 1.5540 SL 1.5620