Demand for the pound was seen from the European open, as the continent absorbed the 00:01GMT disclosure that UK like-for-like retail sales rose by an annualized 3.1% in January (BRC data). The strong number raises the risk of the BoE MPC hiking the UK base rate by another 25bp to 5.5% as earlyas this Thursday.
This would be the first back-to-back hike since the year 2000.GBP/USD offers are touted at 1.9700, 1.9720 and 1.9750 (Friday's post-NFP high).1.9750 also approximates to a 61.8% Fibo retracement point of the fall from 1.9917 (Jan 23, 15-year high) to last Wednesday's 19-day low of 1.9483. 1.9670 is now a pullback support point. Intra-day highs just shy of 1.9670 were notched yesterday, pre-UK service sector PMI. 1.9620/25 is a prop window below. 1.9620/25 option strikes roll off at today's 10am EST NY cut (15:00GMT).
European name selling has helped depress EUR/GBP to an 11-day low of 0.6575. Support points below include 0.6570 and 0.6560. Stops are tipped sub-0.6560. US Treasury Secretary Paulson is slated to speak at 15:00GMT. Fed Governor Bernanke is due to speak at/after 17:45GMT.
No comments:
Post a Comment