Sterling Rise After BOE rate decision’s voting
The Pound rose sharply after the BOE kept rates low at 0.25%, however, the main surprise and what caught investors and traders wrong-footed where the dissenters. The expectation that Forbes is the only one to vote to increase rates was joined by Saunders and McCafferty in a split vote 5-0-3 in favor of keeping rates steady at 0.25%.
EUR/USD has been on the back foot this morning and has now slipped back under 1.1200, but as we noted yesterday, strong demand anticipated in the 1.1150-60 area, and if not then from 1.1120 again lower down. We have also seen USD/JPY gravitating somewhat nervously back towards 110.00 again, and we can only put this down to the lofty levels on Wall Street, which will have been perturbed by a Fed intent on maintaining the normalization path.
EURUSD – The Euro continued the lower move into the negative territory for the day after erasing all the profits of the previous day. The day’s downward movement seems to be stalling a bit at the 25-DMA situated at 1.1150.
GBPUSD – After pretty good odds of a long-awaited increase in interest rates from the BOE some the next meeting, the pound soared covering all the losses for the day and briefly trading above the 55-DMA at 1.2780, which is the resistance to break today.
USDJPY – The FOMC has sent a monkey wrench in the Yen’s strength as it rose after the Fed announcement and rose today above the 110.00 to trade around that level for the mean time.
AUDUSD – 0.7640 is the level to break above for the pair in order for the pair to continue the upward momentum that it has been for the past two weeks.
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***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
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