Fed rate rise speculation gives USD a bid tone

<p>The focus from yesterday seems to be on Fed speculation that they’ll be looking to raise rates, giving the USD some strength, mainly against the […]</p>

The focus from yesterday seems to be on Fed speculation that they’ll be looking to raise rates, giving the USD some strength, mainly against the GBP.

GBP/USD has managed to stay above 1.7100 so far, with manufacturing production due out this morning.

It’s expected to come in the same as last time at 0.4%, followed in the afternoon with a reading of NIESR’s GDP estimate, which was 0.9% the last time.

The euro is stuck in a tight range, with all eyes on the ECB and any hints of QE, with comments from a ECB board member saying that QE should only be an emergency tool.

Another increasing worry for the ECB to act on QE is the call for them to intervene in the high euro, which is currently helping inflation to stay at low levels. Although they’ve said before that this isn’t an action they’d take, it could be an option for them to relieve some pressure.

The yen keeps hold of its gains against a strong dollar as it’d still trading as a safe haven against geopolitical issues and a current account surplus – although it was noted that this only masks the export weakness that Japan currently has.



Supports 1.3560 1.3505 1.3480 | Resistance 1.3560 1.3505 1.3480 res 1.3625 1.3700 1.3720



Supports 101.70 101.20 100.75 Resistance 102.30 102.50 102.85



Supports 1.7100 1.7065 1.6695 Resistance 1.7150 1.7180 1.7200

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.