MNI China Daily Summary: Monday, July 29

MNI: China CFETS Yuan Index Up 0.15% In Week of Jul 26

MNI: PBOC Net Injects CNY243.37 Bln via OMO Monday

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CHINA PBOC CONDUCTS CNY301.57 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1316 MON VS 7.1270

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MNI: UK JUN M4 MONEY SUPPLY +0.5% M/M, +1% Y/Y

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Attention on UK Data Dump at 0600GMT

GBP
MNI (London)
  • Rejection from the $1.3670 area Monday(rate touched $1.369, $1.3670 Mar25 low) picked up momentum through the 0800BST fix, pushed on to a high of $1.3777 into early NY.
  • This recovery in the GBP allowed EUR/GBP to ease back within its key 1.0% 10-dma envelope which relieved some of the recent negative pressure seen on sterling.
  • However, as cross settled around the top of the envelope (Gbp0.8664, by time currently at Gbp0.8677) GBP/USD settled back around $1.3740 through the balance of the NY session.
  • GBP/USD edged to $1.3756 in early Asia before the USD picked up demand which eased rate to $1.3726, though the pullback was fairly muted when compared to EUR/USD, which in turn allowed the cross to ease to Gbp0.8657, and back within the mentioned envelope.
  • Support $1.3723(50% $1.13669-1.3777) ahead of $1.3710/95(61.8%-76.4%), a break here to turn attention back on the $1.3670 area. Resistance $1.3756, $1.3777/83(Apr12/08 highs), stronger into $1.3800.
  • UK data dump at 0600GMT, IP(median 0.5%mm, -4.5%yy), Mfg(median 0.5%mm, -5.1%yy), monthly GDP (median 0.5%mm, -190.0% monthly 3m/3m) , Trade, Construction Output.
  • US CPI (median 0.5%mm, 2.5%yy; core 0.2%mm, 1.5%yy) viewed key for USD direction.
  • MNI Techs: GBPUSD maintains a softer tone and is trading closer to the lower end of its recent range. Firm resistance is at 1.3919, Apr 6 high. Also, a former bull channel drawn off the Nov 2, 2020 low highlights a key resistance at 1.3959. Clearance of 1.3919 and 1.3959 is required to strengthen a bullish argument. Attention is on key support 1.3670, Mar 25 low. A clean break would resume the downtrend and open 1.3641, a Fibonacci retracement.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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