Fed rate rise speculation gives USD a bid tone
City Index July 8, 2014 3:06 PM
<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