Talking Points:
– GBP/USD Remains Oversold; BoE Governor Carney Stands Ready to Normalize
– NZD/USD to Threaten Bearish Formations If RBNZ Removes Verbal Intervention
– USDOLLAR Topside Targets Remain Favored as RSI Pushes Deeper Into Overbought Territory
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GBP/USD
GBP/USD rallies to 1.6155 as Bank of England (BoE) Governor Mark Carney says the central bank remains course to normalize monetary policy by Spring 2015 & sees gradual rate increases in the U.K.
BoE’s Monetary Policy Committee to testify on August inflation report tomorrow at 13:45GMT (9:45EST); will the fresh batch of commentary point to a greater dissent?
Nevertheless, the DailyFX Speculative Sentiment Index (SSI) continues to narrow, with the ratio now standing at +1.45 amid decline in open interest for both short and long positions.
NZD/USD
Technical outlook continues to favor downside targets as price & the Relative Strength Index (RSI) retain the bearish trend.
Reserve Bank of New Zealand (RBNZ) widely expected to keep cash rate at 2.50%; will Governor Graeme Wheeler remove verbal intervention?
Key downside region to watch will be 0.8200 pivot to 0.8220, the 78.6% Fibonacci retracement of the 2014 range.
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Read More:
Price & Time: The Euro ’Dummy”
USD/JPY May See 110.00, USD/CAD 1.1200 Over Coming Weeks
USDOLLAR(Ticker: USDollar):
Index
Last
High
Low
Daily Change (%)
Daily Range (% of ATR)
DJ-FXCM Dollar Index
10835.54
10851.7
10814.88
0.12
100.18%
Chart – Created Using FXCM Marketscope 2.0
Dow Jones-FXCM U.S. Dollar Index looks poised for a further advance as the RSI breaks near-term resistance & pushes deeper into overbought territory.
Credit Suisse Overnight Index Swaps show interest rate expectations continuing to rise ahead of Federal Open Market Committee’s (FOMC) September 17 meeting; currently pricing at least one 25bp rate hike for the next 12-months.
Next topside levels to watch are 10,869 (78.6% retracement) to 10,888 (61.8% retracement) along with the bullish RSI momentum.
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Release
GMT
Expected
Actual
NFIB Small Business Optimism
11:30
96.0
96.1
JOLTS Job Openings
14:00
4700
4673
Fed’s Daniel Tarullo Testifies to Senate Banking Committee
14:00
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— Written by David Song, Currency Analyst
To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.
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Source: Daily fx