Weak US housing data puts downward pressure on the US dollar
City Index July 23, 2013 1:49 PM
<p>A very quiet session to the start of this week due to the summer markets. GBP is having a strong start against a still weakening […]</p>
A very quiet session to the start of this week due to the summer markets. GBP is having a strong start against a still weakening USD and some positive comments from PM Cameron saying that the improving economy may allow the UK to reduce taxes. Weaker than expected sales of existing homes in the US is keeping USD lower, with possible views of the Fed still needing QE.
Overnight we saw very tight ranges and no data released. Among the few news releases notably, China sees 7% as a bottom-line growth would be tolerable, Japan’s government has upgraded its view on the economy, saying deflation is easing.
Not much in the way again today of data to be released. UK BBA mortgage approvals are expected at 38.5k and CAD core retail sales are expected at 0.1%. So today we can expect more of the same tight ranges, with a possible carry on with the USD weakness due to lack of data and thin summer markets.
Supports 1.3150 1.3110 1.3060 | Resistance 1.3220 1.3255 1.3300
Supports 99.10 98.60 98.25 | Resistance 99.75 100.00 100.60
Supports 1.5345 1.5310 | Resistance 1.5390 1.5415 1.5435