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31 Jul 2015
GBP/USD bulls 'n'bears squaring up at month need testing 1.56 the fig
FXStreet (Guatemala) - GBP/USD is currently trading at 1.5614 with a high of 1.5679 and a low of 1.5548.
GBP/USD had shot up from the 1.5560 region towards 1.5680 on the back of … (still scratching heads)… employment costs index which is usually second tier data but was enough of a miss at 0.2% vs 0.6% consensus that the dollar was well and truly battered.
(GBP/USD spikes to 1.5650 as the treasury yields drop)
The FOMC statement was highlighting that there needs to be an improvement in the labour sector, but this could be somewhat of overkill on those points from the market. It certainly sets a scene for next week's Nonfarm Payrolls as to the type of price action we may see on key data points leading up towards September.
As recently posted, the Fed has gone from, "Why should we raise rates to why should we not raise rates?". As explained by Derek Halpenny, analyst at The Bank of Tokyo Mitsubishi UFJ explained. "The FOMC intentionally is maintaining the degree of flexibility required in these uncertain times."
GBP/USD additional price action
The price has started to come back in favour of the bears down to test the 1.5620 support area and 1.56 the figure with further data in the Chicago purchasing manager's index at 54.7 vs 50.5 although this support line is backed up by the Reuters/Michigan Consumer Sentiment at 93.1 vs 94.0 consensus.
This is month end today and there is little left on the books so it may be a case now that with all the data out of the way that we drift from here as we get set for a very busy month ahead and starting next week with BoE decision and inflation report ahead of Nonfarm Payrolls for the US. Senior Currency Strategist at Rabobank Jane Foley believes the ‘Old Lady' will hike rates in Q2 2016. However, she added, "Since the Bank is still likely to be the second G10 central bank to be out of the rate hike stalls we expect sterling to remain firm against a host of other currencies”.
GBP/USD is a coin with two sides around 1.5674
Technically, GBP/USD was up to test the highs of yesterday but fell shy and is capped at month end. However for now, Karen Jones, chief analyse at Commerzbank explains that this resistance together with a pivot line at 1.5734 keeps their overall negative bias intact. "The intraday Elliott wave counts are more negative and a break below the 1.5529 uptrend should be enough to trigger losses to the 200 day ma at 1.5395." For the upside, she explained further …here.
GBP/USD had shot up from the 1.5560 region towards 1.5680 on the back of … (still scratching heads)… employment costs index which is usually second tier data but was enough of a miss at 0.2% vs 0.6% consensus that the dollar was well and truly battered.
(GBP/USD spikes to 1.5650 as the treasury yields drop)
The FOMC statement was highlighting that there needs to be an improvement in the labour sector, but this could be somewhat of overkill on those points from the market. It certainly sets a scene for next week's Nonfarm Payrolls as to the type of price action we may see on key data points leading up towards September.
As recently posted, the Fed has gone from, "Why should we raise rates to why should we not raise rates?". As explained by Derek Halpenny, analyst at The Bank of Tokyo Mitsubishi UFJ explained. "The FOMC intentionally is maintaining the degree of flexibility required in these uncertain times."
GBP/USD additional price action
The price has started to come back in favour of the bears down to test the 1.5620 support area and 1.56 the figure with further data in the Chicago purchasing manager's index at 54.7 vs 50.5 although this support line is backed up by the Reuters/Michigan Consumer Sentiment at 93.1 vs 94.0 consensus.
This is month end today and there is little left on the books so it may be a case now that with all the data out of the way that we drift from here as we get set for a very busy month ahead and starting next week with BoE decision and inflation report ahead of Nonfarm Payrolls for the US. Senior Currency Strategist at Rabobank Jane Foley believes the ‘Old Lady' will hike rates in Q2 2016. However, she added, "Since the Bank is still likely to be the second G10 central bank to be out of the rate hike stalls we expect sterling to remain firm against a host of other currencies”.
GBP/USD is a coin with two sides around 1.5674
Technically, GBP/USD was up to test the highs of yesterday but fell shy and is capped at month end. However for now, Karen Jones, chief analyse at Commerzbank explains that this resistance together with a pivot line at 1.5734 keeps their overall negative bias intact. "The intraday Elliott wave counts are more negative and a break below the 1.5529 uptrend should be enough to trigger losses to the 200 day ma at 1.5395." For the upside, she explained further …here.