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Daily Insight: Greenback Strength Continues

Published 09/09/2014, 04:05 AM
Updated 07/09/2023, 06:31 AM


Asia Roundup

Greenback strength continued throughout the Asia session to see USDJPY hit a 6-year high and both EURUSD and GBPUSD breaking to new lows.

UP NEXT:

Economic Calendar

GBP: Whilst UK data provides the most info there is the risk of it not affecting the markets much. We have already seen Cable decline on positive domestic data, as the Scottish Referendum has been the main driver. For Carney to provide any support for Cable tonight he needs to be particularly Hawkish (and provide clues for rate hike timing) but this is very unlikely as BoE would probably want to hold off until after the referendum to make that decision.

USD: Given the Hawkish comments from FOMC members and the Greenback's bullish reaction then Tarullo is unlikely to be able to undo this work all in one speech. However any Dovishness may take the steam out of the bull-run, whilst Hawkish comments will add greater weight to an earlier rate hike form the US.

TECHNICAL ANALYSIS:

GBPUSD: Can Carney help Cable rise from the ashes?
GBP/USD

BIAS: Price to remain capped by 1.610 resistance and trade towards 1.60 within the bearish channel.

COUNTER-BIAS: A break above 1.610 invalidates the channel and can be taken as a counter-trend signal towards 1.618

EURUSD: Continues to drop, one step at a time

EUR/USD

It has been hard to find trends as timely as we have seen on GBP and EUR pairs on FX for quite some time.

BIAS: An attempt to trade up to 1.292 and sell into any rallies. A break above this level opens up 1.30

COUNTER-BIAS:A direct move down towards 1.279

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