Sterling testing 1.58 handle
There were no major data releases from the UK today as well, however, Sterling continues its uptrend. Investors have priced-in a chance that Fed will hike interest rates later than expected, possibly in December and not in September as it was initially expected. On the other hand, BoE also seems ready to raise interest rates at the beginnimg of 2016 as growth and labour market seems stable in the past few months.
The dollar has come under pressure as mounting uncertainty over the global growth outlook and the subdued U.S. inflation outlook has prompted investors to scale back expectations for an initial rate hike by the Federal Reserve. Financial markets have been roiled since China devalued the yuan on August 11, exacerbating fears over a China-led slowdown in the global economy.
Sterling is currently being traded few points above 1.58 handle. Pair is likely to find support around 1.5750 area and resistance above 1.5850 level. Later today, in the US session, Consumer Confidence and New Home Sales figures are scheduled for a release.
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