Sterling performed well yesterday

<p>  GBP/USD Range: 1.6016 – 1.6088 Support: 1.6000 Resistance: 1.6150 Sterling performed well yesterday, catching a short market with stronger services PMI numbers. GBP rallied […]</p>

 

GBPUSD
GBP/USD
Range: 1.6016 – 1.6088
Support: 1.6000
Resistance: 1.6150
Sterling performed well yesterday, catching a short market with stronger services PMI numbers. GBP rallied particularly well against the Euro. EUR/GBP held the 0.8970 level and I would use this as we head into the week’s main events – BoE and ECB interest rate announcements tomorrow and US non-farm payrolls on Friday.
EURUSD
EUR/USD
Range: 1.4416 – 1.4467
Support: 1.4380
Resistance: 1.4490
The euro was punished in thin market conditions  in the New York session last night as ratings agency Moody’s downgraded Portugal to Ba2 (negative outlook ) from Baa1. Portugal now joins Greece as the only sub-investment single currency member. With a lack of data releases today, I would think that this market will be dominated by headlines on the European crisis to the debt ceiling issue in the US. Clearer markets should start tomorrow as we head into the business end of the week, with the ECB expected to hike rates by 0.25% to 1.5% but it will be Jean-Claude Tritchet’s press conference that the market will really be focusing on as a gauge to further tightening.
AUDUSD
AUD/USD
Range: 1.0683 – 1.0734
Support: 1.0600
Resistance 1.0800
The Australian dollar continues to hold support on expectations that the RBA will have to hike rates, although this hike is now not seen until later in the year with October or November now being priced in as the likely months. AUD broke its two-day losing streak against the US dollar, with gains in the Asia session as markets look for a stronger labour report that is due to be released in the Asia session on Thursday.

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