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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- GBPUSD slips to session lows in recent trade, breaking out of a narrow overnight range as markets digest a busy Wednesday which included the hotter-than-expected CPI and the surprise announcement of a snap election. In similar vein, EURGBP has had a 25 pip bounce from session lows, assisted by the stronger-than-expected German PMI. Furthermore, participants will be aware of the 0.8500 handle marking an important support over the past 18 months.
- The cross has failed to close below 0.8500 since August 2022, with several tests over the past year being well respected.
- Technically we noted that Wednesday’s move resulted in a break of short-term support at 0.8531, the Apr 30 low, confirming an extension of the reversal that started May 9. Note that the key support and bear trigger lies at 0.8493, and a sustained breach of this point would be required to enhance bearish momentum.
- Despite betting markets expecting a smooth Starmer victory on July 04, both the expectation of an increase in political noise and the prospects of a Labour government for the UK economy could pose downside risks for sterling.
- With that said, if 0.8500 continues to hold in, markets will initially target a recovery towards 0.8566, the 20-day EMA. Above here, the Apr 23 high and bull trigger is at 0.8645.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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