The main currencies consolidate amid lack of news today. The pound
is an exception. According to expets’ opinion, the MPC is keeping its
options open but we still expect no further gilt purchases. Instead, the
BoE will probably adopt forward guidance next month and use other tools
to add stimulus should the recovery stall. However, if it were to go
down that path UK and US policy would diverge and that would be negative
for the GBP
EURO:
The euro’s strength was limited against the dollar after Portugal’s president late Sunday backed the current coalition government of Prime Minister Pedro Passos Coelho. The support from President Anibal Cavaco Silva removed the threat of snap elections and associated hurdles to implementing unpopular austerity measures, reports said.
Portugal’s Prime Minister noted country must regain lost confidence. 10-year Portuguese bonds yield 6.26%; down 48 bps
The euro’s strength was limited against the dollar after Portugal’s president late Sunday backed the current coalition government of Prime Minister Pedro Passos Coelho. The support from President Anibal Cavaco Silva removed the threat of snap elections and associated hurdles to implementing unpopular austerity measures, reports said.
Portugal’s Prime Minister noted country must regain lost confidence. 10-year Portuguese bonds yield 6.26%; down 48 bps
EUR/USD continues to move higher. Next target lies at 1.3275 that could prove a touch not to crack. Buying opportunities may come in at 1.2985/40 support. Breaking of this level will open the way to 1.2755/40 recent low and April low. Key resistances that are containing the downside are at 1.3373/1.3415, June high.
POUND:
The pound still rises after U.K. Prime Minister David Cameron said an improvement in the economy may allow the government to lower taxes.
The pound still rises after U.K. Prime Minister David Cameron said an improvement in the economy may allow the government to lower taxes.
A report this week will show Britain’s economy expanded 0.6% in the second quarter, double the rate in the previous three months, according to the median prediction of economists.
GBP/USD has broken $1.5300. Above the figure the resistance comes at $1.5340 (Jun 24 lows) and $1.5390/00 (61.8% Fibo of the $1.5750 - $1.4810 decline). Initial support comes at $1.5200 with a break below losses may extend to $1.5150 (Jul 18 lows) and $1.5080 (Jul 17 lows).
YEN:
The dollar increases its losses against the Japanese yen as Prime Minister Shinzo Abe’s ruling party consolidated its power in this weekend’s election.
The dollar increases its losses against the Japanese yen as Prime Minister Shinzo Abe’s ruling party consolidated its power in this weekend’s election.
Abe’s Liberal Democratic Party and its New Komeito ally now have 135 of the 242 seats in the upper house. The LDP has controlled the lower house since elections in December.
USD/JPY stays near the channel support line from Jun 13 at Y99.70 with a break under widens losses to Y98.20 (Jul 11 lows). Back above Y100.00 targets Y100.50 (Jul 15 highs), then - at Y101.00 and Y101.50 (Jul 7 highs).
DATA AHEAD:
Monday is very light for economic reports, including US Jun Existing Home Sales Change at 14:00 GMT.
Monday is very light for economic reports, including US Jun Existing Home Sales Change at 14:00 GMT.
Комментариев нет:
Отправить комментарий