Wednesday, August 15, 2012

Market Update: GBPUSD Seeing Support

Today’s News

  • UK Claimant Change “Better Than Expected”
  • UK MPC Minutes “No Changes”
  • US CPI – Coming up at 8:30 EST

UK Claimant Change figures were better than expected this morning. Also, the Bank of England’s MPC Minutes revealed no changes from last month as all 9 members were in favor of leaving interest rates at 0.5%. On the news, the GBPUSD traded back towards the 1.5700 figure, holding currently just below. Coming up today, Forex traders will be awaiting US CPI figures. With the USDJPY finally gathering momentum as it nears 79.00 we could see additional momentum in the Forex pair after today’s CPI numbers. Also, a low reading could knock prices of Gold lower after they fell below 1600 again today.
Charts to Watch

GBPUSD: Has long term resistance at 1.5750, but is creating a solid base just above 1.5650. As such, the pair could be gaining enough demand to finally break out above 1.5750. On the other hand, if 1.5650 fails, it could trigger hard selling pressure in the GBPUSD as short term traders take profits and exit the pair.
  USDJPY : As noted above, beginning to gather momentum and is currently trading above its initial post Non Farm Payrolls highs from earlier this month. After establishing long term support at 78.00, we may be seeing the start of demand in the pair becoming more aggressive to the upside.

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