BOC SAYS DOESN'T NEED TO ALTER PATH OF QT RIGHT NOW

this is a test, please ignore

MNI BRIEF: Text of Bank Of Canada Interest-Rate Decision

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: PBOC Sets Yuan Parity Higher At 7.1358 Weds; -0.98% Y/Y

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: BTP Short Term and BTPeis on Thursday

EZ/UK T-Bill Calendar: Italy, UK Auction on Friday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GBP/USD Just Off Lows Ahead of CPI

GBP
MNI (London)
  • Risk aversion through Tuesday weighed on GBP, took GBP/USD to an initial low of $1.3750 in Europe. Rate struggled to gain a toe hold back above $1.3800 in early NY before fresh pressure took it to an eventual low of $1.3741 ahead of the close.
  • The UK-EU COVID vaccine spat continues, despite calming noises from PM Johnson at his COVID one year lock down anniversary press conference yesterday, with some suggesting EU could ban vaccine exports to countries with advanced vaccination programme (ie UK).
  • Break of long term trend line at $1.3788, drawn off Mar20 2020 low, and Mar05 low at $1.3779 (see MNI Techs below) seen significant.
  • Rate managed to post an early high at $1.3759 before risk off pressure resumed, pressed rate down to challenge $1.3725 (76.4% $1.3567-1.4237), the eventual break taking it to a low of $1.3702 before meeting willing buyers taking it back to $1.3721.
  • Expect some resistance at $1.3725, a break to open a move back toward $1.3750 ahead of broken trend support now coming in at $1.3797. Support into $1.3700 ahead of $1.3690/81 (1.618% swing $1.3809-1.4001/Feb08 low), $1.3663(Feb05 low) and $1.3637 (76.4% 1.3452-1.4237 (2021 range).
  • Rate currently trades outside the base of its 1.0% 10-dma envelope, current $1.3739. Tends not to like being outside for long.
  • UK CPI provides opening Europe focus at 0700GMT. Flash PMI set at 0930GMT also of note (median Svcs 51.0, Mfg 55.0).
  • MNI Techs: GBPUSD is bearish. Yesterday's move lower confirmed a breach of the bull channel base from the Nov 2, 2020 low. Furthermore, price has this week cleared the 50-day EMA and a former key support at 1.3779, Mar 5 low, triggering an important short-term reversal. The focus is on 1.3663 next, Feb 5 low. On the upside, the former channel base at 1.3825 today, provides initial resistance. Heavy!
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

To read the full story

Close

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.