UK GDP the highlight as FX consolidates and September volatility looms

<p>  EUR/USD Range: 1.2526-1.2582 Support: 1.2480 Resistance: 1.2625 The Fed’s James Bullard failed to take the shine off the Fed minutes EUR/USD inspired rally when […]</p>

EUR USD

EUR/USD

Range: 1.2526-1.2582
Support: 1.2480
Resistance: 1.2625

The Fed’s James Bullard failed to take the shine off the Fed minutes EUR/USD inspired rally when he warned the August FOMC minutes were ‘stale’ and recent US data flow does not warrant a ‘gigantic’ policy response but as I mentioned yesterday the US data since the meeting has been stronger and that extra policy measures from the Fed doesn’t necessarily mean QE3. There are rumours Spain is to officially ask for a help this morning with Greek/German tension building again. The USD is probably due a correction.

 

 

GBP USD

GBP/USD

Range: 1.5848 – 1.5870
Support: 1.5800
Resistance: 1.6000

Very little to add ahead of the long weekend in the UK with the release of the preliminary Q2 GDP reading for the UK at 9.30am this morning, the market will be looking for an upward revision to -0.5%. Like most currencies in the G10 space sterling consolidates some 60 points from the May highs. EUR/GBP continues to trade 0.7885-0.7935 with rumours that Spain are about to ask for official help.

 

 

AUD USD
AUD/USD

Range: 1.0377-1.0447
Support: 1.0350
Resistance: 1.0550

RBA Governor Glen Steven’s speech was consistent with the RBA being fairly comfortable with its current policy stance. While citing risks and uncertainties associated with the global economy and the current structural change within the Australian economy, Stevens said “Overall, growth is forecast still to be close to trend, albeit with a different composition from that seen in the past year or two, and inflation consistent with the target.” EUR/AUD trades comfortably above 1.2000 this morning with the lifestyle trading back to recent lows.

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.