Currency Updates:
Sterling continues to dominate the boards as the GBPUSD reached new monthly highs (1.5710) boosted by stronger than expected production data. Ever since the elections are over in the UK, GBP has been bullish, since the political uncertainty is over. BoE quarterly inflation report will be the main focus today. Some analyst noted that the inflation report could be a Sterling negative event as BoE is expected to revise down this year’s inflation and GDP growth projection.
EURUSD is still supported by the weakness in USD caused by the shift of expectations as to when the Fed will start raising rates. 1.1220 is the 200 day Moving Average so that level is closed watched.
Firming GOLD and other commodity prices have boosted AUDUSD to 0.8010 highs as well as USDCAD to 1.1980 lows. (CAD is closely linked to OIL prices, so when OIL rises, usually USDCAD drops as the Canadian currency strengthens)
Key Data today are: Germany’s Q1 GDP, along with CPI. Additionally, we have the US retail Sales as well as the Inflation Report from the UK.
Trading Quote of the day: Trade what you see, not what you think.
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