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4 Jun 2013
Sterling hanging into 1.5300 territories before US data
FXstreet.com (London) - Sterling has been fairly muted ahead of US trade data coming up, but holding in again to the 1.5300 zone at time of writing. Interestingly, there was also some steady EUR/GBP buying this morning despite a much stronger than expected Construction PMI outcome.
Moreover, in terms of data moving expectations, the Central banks, BoE and ECB, meetings are likely to be a non-event which TD Securities says means the next biggest event of the week for the FX space could be the US labour report on Friday. After the mixed signals from the ISM and Chicago surveys over the past couple days, the jobs report could provide another valuable signal on how the US recovery is unfolding. Technically, research teams at Commerzbank noted the move and have said GBP/USD’s corrective rebound has reached 1.5373 (61.8% retracement) and they must allow for an extension to 1.5476 (78.6% retracement) ahead of failure. Near term strength is viewed as corrective only and they will maintain an overall negative bias while capped by the 1.5601 May high.
The team states that the interim support lies at 1.5200/1.5190 ahead of key support, which remains the 1.5035/1.4997 target zone, made up of the April and the 20th of March lows as well as the 78.6% Fibonacci retracement of the March-to-May rise, placing support at 1.4997 and regarding this as the last defence for 1.4832, the March low.
Moreover, in terms of data moving expectations, the Central banks, BoE and ECB, meetings are likely to be a non-event which TD Securities says means the next biggest event of the week for the FX space could be the US labour report on Friday. After the mixed signals from the ISM and Chicago surveys over the past couple days, the jobs report could provide another valuable signal on how the US recovery is unfolding. Technically, research teams at Commerzbank noted the move and have said GBP/USD’s corrective rebound has reached 1.5373 (61.8% retracement) and they must allow for an extension to 1.5476 (78.6% retracement) ahead of failure. Near term strength is viewed as corrective only and they will maintain an overall negative bias while capped by the 1.5601 May high.
The team states that the interim support lies at 1.5200/1.5190 ahead of key support, which remains the 1.5035/1.4997 target zone, made up of the April and the 20th of March lows as well as the 78.6% Fibonacci retracement of the March-to-May rise, placing support at 1.4997 and regarding this as the last defence for 1.4832, the March low.