|Day's Range||1.33 - 1.345|
|52 Week Range||1.1995 - 1.3616|
The Euro was quite volatile during the yesterday’s session as it was expecting a rate hike and future growth outlook announcement from the ECB. The Central Bank didn’t go ahead with the rate hike but raised the outlook for future growth. The pair initially went higher during the yesterday’s session but after the Bank of England announcement on monetary policy, the market went lower.
Euro/Dollar sees consistent results across the table, as it has exactly 5 neutral studies in the short, mid and long-term, and they indeed are in line with the less than 8% long interbank. The Cable also has neutral signals prevailing in all three time ranges, with 6 neutral studies in the short-term, 5 in the mid-term and 5 in the long-term, and the technicals are supported by the less than 2% short interbank. The 24-hour scale turns neutral with 6 studies, but, in contrast, the interbank is bullish at more than 22% long.
The British pound continues to be very noisy, initially rally during the day on Thursday, but then pulled back rather significantly. Towards the end of the day though, we started to see buyers jump back in.
With the economic calendar on the lighter side, the Dollar and the Pound will be in focus as talk of tax reforms continues to jostle the Dollar, while the EU is expected to announce a move on to the next phase of Brexit negotiations, which should be Sterling positive.
Retail Sales data will come from the States and ECB President will soon begin his Press Conference after keeping the key interest rate from the European Central Bank intact.
The Federal Reserve surprised no one when they hiked their interest rate by a quarter of point yesterday. The Pound and Euro responded with gains. The Bank of England and European Central Bank will release their monetary statement today.
The market yesterday was bit volatile as it tried to build some support area around the region ahead of the crucial Fed rate hike policy decision. Now, the Fed has hiked the interest rate by 25 basis points and is more hawkish on the future rate hike, the market is expected fall lower towards the 1.17 level. The market was very noisy ahead of the Fed rate hike policy decision in Wednesday’s session, as it rallied towards the 1.34 level with a support of 1.33 level.
The British pound has been very noisy over the last several sessions, but it looks as if we are trying to form a bit of a rounded bottom, and after the Federal Reserve releases its statement, we could see the market power much higher if there is a dovish surprise. Of course, the exact opposite could be true as well.
Although better than expected UK Earnings triggered the GBPUSD’s bounce, the pair still remains below a short-term ascending trend-line, at 1.3370, that it broke yesterday. Given the prices continue declining after the 1.3245 SMA figure’s break, the 1.3170-60 region, comprising six-month old upward slanting TL, could challenge the Bears. GBPJPY is another GBP pair which took a U-turn after British employment details but still trades beneath recent TL break and hence continue remaining weaker.
The volatility in the counter is mainly due to the Federal Reserve releasing its interest rate hike announcement later in the day today. A hawkish outlook will make this market to fall lower. This is mainly due to the Federal Reserve coming out with rate hike policy decision.
The Federal Reserve is expected to raise its interest rate today, but its outlook via the Monetary Policy Statement is unknown.
Forex has become very cautious the past day as traders await a slew of central bank announcements over the next day and a half. The Pound has been also affected by political concerns again in the U.K and Gold has essentially sat in place. The Pound has remained near the lower rungs of its short-term value as political concerns once again embattle the U.K landscape.
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The British pound was a volatile during the trading session on Tuesday, bouncing around the 1.3333 handle. Ultimately, this is a market that finds this area interesting, but with the Federal Reserve coming out with an announcement today, it’ll be interesting to see where we end up.
The mid-term is divided between green and neutral signals, and the daily outlook is back to neutral. The interbank is neutral as well at less than 11% long, matching the 1 and 24-hour models. Mid-term brings 5 sell prompts, and the long-term is split between red and neutral models.
Gold has been under pressure and continues to test important short-term support. U.S Crude Oil has been able to gain. After initially gaining in early trading on Monday, the British currency reversed lower and has maintained its weaker path against the U.S Dollar.
Markets were somewhat lackluster on Monday, and that trend appears set to continue Tuesday as traders await a host of Central Bank meetings starting on Wednesday, with the Federal Reserve expected to hike rates at their last FOMC meeting of 2017.
Effectively this market will continue to be volatile in today’s session as the outcome of FOMC meeting on rate hike will come on Wednesday. If the statement from FOMC comes little hawkish, then this market will rally further towards the 1.20 level, and then eventually at 1.21 level.