Subdued Monday as participants await big day for Fed speak…
The first day of the week saw a muted trading session with currencies more than happy to trade well within their recent ranges ahead of what should be an interesting few days.
Monday saw both the pound and euro trade within 0.40 cent ranges against the greenback. While the buck looked vulnerable it managed to restrain any significant losses. Overnight, the same theme has continued, a US dollar which is looking increasingly exposed after the Fed recently indicated it’s willing to begin the process of lowering interest rates. The key level for the GBP/USD pair comes in the form of an area between $1.2750 and $1.2770. This pocket of resistance has prevented the rate moving higher on a number of occasions and is now the crucial zone the pair must break if it holds any intention of capitalising on recent dollar weakness.
The US dollar is quite right to trade cautiously heading into Tuesday’s trading session. The day hosts a number of Federal Reserve member speeches including the top man, Fed chair Powell. Also on the docket we’ll have speeches from Williams, Bostic, Barkin and Bullard. Essentially, if the Fed mean business when they say they’re prepared to cut rates then we’ll definitely know it by the end of today.
Elsewhere on the data-front, today sees US new home sales, Richmond manufacturing numbers, US consumer confidence as well as a UK CBI trade survey.
Written by Viv Savani. 9:13am, June 25th 2019
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