wrapper

Where will Sterling head next?

Wednesday, May 27 2015
After it came near 1.58 handle in post-election period, Sterling gradually fell in the past few sessions and us currently being traded slightly above 1.54 handle. However, this a rebound after yesterday's decline all the way to 1.5350 area and we are actually sitting at key support area. If we see break below hammer formed yesterday, pair is likely to head towards 1.50 handle given enough time. On the other hand, decisive break above 1.55 handle would push pair back to 1.57 handle.
 
Traders are also being cautious at the moment as they are evaluating several things waiting for UK and US GDP data scheduled for a releases later in the week. After David Cameron's election victory the next question is possible British exit from EU. BoE recently confirmed that is will assessing conditions in a case this happens and this would be a huge market mover.
 
However, BoE rate hike still remains the main issue. Despite stability in the labour market, inflation fell to deflation area for the first time since 1960. what, though still seen as only short-term trend, would be of major impact on future monetary policy. For now, we cannot expect any rate hike before well into next year, but we can be sure there will be no additional cut.
 
As for today, pair is likely to find support around 1.5350 handle and resistance near 1.5460 area. There will be no major data releases in the rest of the session.
More in this category: « German Consumer Climate rose to 10.2 points Markets little changed in a quite Wednesday trade »

Latest from Editor

About Us

Forex Web News is part of Rolling Capital Network providing financial consulting.

Within the Forex Web News we provide our readers with expert and timely technical analyses, fundamental analyses and news; with one aim – for our readers to make best possible financial decisions.

Forex Web News desks and analysis department follow the international markets closely and create high quality proprietary content on a both daily and weekly basis.

.

All our analysts have several years of trading and analysis experience. The Forex Web News analysis team creates daily and weekly analyses and offer forecasts regarding where they believe the markets are heading. Our readers are provided with data displayed both in texts and on graphs, providing them the fullest understanding of what is happening in the market place.

We are constantly growing our news desks and our analysis departments as we strive to broaden the content we provide to visitors of the Forex Web News.

Disclaimer

Rolling-capital.com – The company, employees, subsidiaries and associates, are not liable nor shall they be held liable jointly or severally for any loss or damage as a result of reliance on the information provided on this website. The data contained in this website is not necessarily provided in real-time nor is it necessarily accurate. All prices herein are provided by market makers and not by exchanges. As such prices may not be accurate and they may differ from the actual market price. rolling-capital.com bears no responsibility for any trading losses you might incur as a result of using any data within the Forex Web News.