GBP to take the limelight ahead of the FOMC
City Index January 28, 2014 1:58 PM
<p>Sterling is likely to be the focal point today as the market awaits the release of Q4 GDP data this morning. Market consensus is looking […]</p>
Sterling is likely to be the focal point today as the market awaits the release of Q4 GDP data this morning. Market consensus is looking towards 0.7% month-on-month, bringing the annual number to 2.8%.
The vote on the Vodafone/Verizon deal is also due which, if successful, could see demand for the pound from any cash M&A prospective.
Overnight, the emerging market inspired risk off has abated for now, following news that the Central Bank Of Turkey will hold an emergency policy meeting at 10pm tonight with expectations that rates will rise a further 2.25%.
With 8% of currency reserves already used in failed currency intervention, however, the bar is high for TRY strength.
Risk sentiment was supported further in Asia as the NAB business conditions rose to 4 from -3 in November as media reports suggested that investors in China’s credit trust PWM product will recover 94% on their original investment.
There is no doubt today that the FX markets will take their cue from equity markets, driven by concerns in the EM space.
Data highlights will be the UK GDP this morning, followed by durable goods, housing index and the consumer confidence index from the US – with the illiquid twilight zone likely to cause volatility with policy announcements from New Zealand and Turkey.
Supports 1.3650-1.3630-1.3570 | Resistance 1.3725-1.3750-1.3800
Supports 102.30-102.00-101.75 | Resistance 103.10-103.50-103.85
Supports 1.6570-1.6520-1.6475 | Resistance 1.6640-1.6670-1.6720
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