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Forex: GBP/USD in a narrow range around 1.5560/65

FXstreet.com (Barcelona) - The inactivity in the UK markets due to the holiday is weighting on the cross, draining its volume and limiting the price action to a narrow range between 1.5560/70 on Monday.

Against the backdrop of the BoE MPC meeting this week, the Analyst M.Mohi-uddin at UBS commented, “The underlying picture of fiscal tightening, weak economic growth, bank deleveraging and stubbornly high trade deficits continues to suggest sterling needs to be lower to help rebalance the economy”.

As of writing, the cross is posting meagre gains at 1.5562 or 0.04% with the next resistance at 1.5603 (high May 3) followed by 1.5607 (high May 1) and finally 1.5690 (high Feb.13).
On the downside, a breach of 1.5505 (low May 3) would expose 1.5480 (low May 3) and then 1.5467 (low Apr.30).

Forex Flash: USD/CAD to rise on USD strength and CAD underperformance – TD Securities

TD Securities analysts think the broader USD direction is higher overall: “Regardless of the “soft patch” of slower growth the US data have been reflecting recently, the US economy will be growing head and shoulders above Europe and Japan through 2014. In the event of any setback for risk (something we consider still quite possible), the USD should benefit from safe-haven demand, meanwhile”, wrote analysts Shaun Osborne and Greg Moore, adding that CAD is to under-perform in the months ahead with Canada’s large current account deficit (3.8%/GDP versus the relatively smaller—and shrinking—US shortfall at 2.5%/GDP) as one of the reasons behind it. “From a technical perspective, we still think the turn up from 1.0050 last week has provided a firm base for the market ahead of medium-term support (200-day MA) around the par zone. Minor resistance is 1.0150”, they said.
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Forex: USD/JPY 100.00 Cards Are Stacking UP

Bids for USD/JPY came in at 97.00 last week holding USD/JPY firm for a run up to test the psychological level of 100.00 for the third time.
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