Talking Points:
British Pound Stronger as BOE Governor Carney Talks Up Rate Hike Bets
Yen May Decline as Aussie and NZ Dollars Rise on Firming Risk Appetite
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The British Pound outperformed to start the trading week, rising as much as 0.3 percent on average against its leading counterparts. The move followed supportive comments from Bank of England Governor Mark Carney made in an interview with the Sunday Times published over the weekend. Carney said the economy is “much more than halfway” to full economic recovery and argued interest rates may have to rise before wages, seemingly contradicting rhetoric released in the quarterly Inflation Report just last week.
The economic calendar is quiet in European and US trading hours, hinting risk sentiment trends may dominate as the driver of currency market price action in the near term. S&P 500 and FTSE 100 futures are pointing firmly higher in late Asian trade, hinting at a “risk-on” mood. This bodes well for the sentiment-linked Australian and New Zealand Dollars. Meanwhile, the safe-haven Japanese Yen may face selling pressure.
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Asia Session
GMT
CCY
EVENT
ACT
EXP
PREV
22:30
NZD
Performance Services Index (JUL)
58.4
–
55.2
23:01
GBP
Rightmove House Prices (MoM) (AUG)
-2.9%
–
-0.8%
23:01
GBP
Rightmove House Prices (YoY) (AUG)
5.3%
–
6.5%
1:30
AUD
New Motor Vehicle Sales (MoM) (JUL)
-1.3%
–
2.2%
1:30
AUD
New Motor Vehicle Sales (YoY) (JUL)
-0.4%
–
-2.0%
1:45
CNY
MNI Business Indicator (AUG)
59.0
–
58.2
2:00
CNY
Foreign Direct Investment (YoY) (JUL)
-17.0%
0.8%
0.2%
European Session
GMT
CCY
EVENT
EXP
PREV
IMPACT
9:00
EUR
Eurozone Trade Balance s.a. (€) (JUN)
15.0B
15.3B
Low
9:00
EUR
Eurozone Trade Balance (€) (JUN)
15.1B
15.4B
Low
Critical Levels
CCY
Supp 3
Supp 2
Supp 1
Pivot Point
Res 1
Res 2
Res 3
EURUSD
1.3285
1.3338
1.3369
1.3391
1.3422
1.3444
1.3497
GBPUSD
1.6641
1.6666
1.6680
1.6691
1.6705
1.6716
1.6741
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.Learn forex trading with a free practice account and trading charts from FXCM.
Source: Daily fx