TRADING TIPS :
- Forex-Dollar holds near 14-month highs, U.S. data in focus.
- Forex-Dollar extends gains on rate hike prospects.
- Forex-EUR/USD gains as dollar rally takes a breather.
USD/JPY was 0.17% at 107.28, up from a session low of 106.97 and off a high of 107.40.The pair was expected to test support at 104.67, last Friday’s low, and resistance at 108.0, the high from Sept. 19, 2008.The Thomson Reuters/University of Michigan preliminary consumer sentiment index rose to a 14-month high of 84.6 this month from 82.5 in August. Analysts had expected the index to rise to 83.3 in September.The report came after official data showed that U.S. retail sales rose 0.6% last month, in line with expectations. Retail sales for July were revised to a 0.3% gain from a previously estimated flat reading.Friday’s data fueled already growing expectations that the Federal Reserve will hike interest rates earlier than markets were expecting, with tightening seen taking place now in mid-2015
GBP/USD hit 1.6218 during European morning trade, the session high; the pair subsequently consolidated at 1.6247, inching up 0.06%.Cable was likely to find support at 1.6168, the low of September 7 and a 10-month low and resistance at 1.6339, the high of September 5.Markets shrugged off official data showing that U.K. construction output was flat in July, compared to expectations for a 0.7% rise, after an increase of 1.2%.Meanhile, demand for the dollar continued to be underpinned by expectations for an early hike in U.S. interest rates, despite data on Thursday showing that U.S. Jobless claims rose more than expected last week.A study by the San Francisco Fed published on Monday indicated that central bank officials see rates rising sooner than markets expect.
1. Buy USD/JPY Above 107.47-TG:107.67/107.97 SL 107.17
2. Sell USD/JPY Below 106.60-TG:106.40/106.10 SL 106.90