MNI China Daily Summary: Wednesday, June 19

MNI BRIEF: Rate Changes Affect Eurozone More Than US Firms-ECB

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CHINA PBOC CONDUCTS CNY278 BILLION VIA 7-DAY REVERSE REPOS WEDS

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EZ/UK Bond Supply Calendar: Spain, France Auction on Thursday

MNI: US NAHB HOUSING MARKET INDEX 43 IN JUN

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MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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GBP/USD Struggled Again to Hold Above $1.3800 With USD Regaining Poise

GBP
MNI (London)
  • Recovery off Thursday's low of $1.3670 extended Friday to $1.3812 ahead of the fix before it settled between $1.3780/1.3800 into the close.
  • Rate touched a high of $1.3805 in opening Asian trade, finding support again at the $1.3780 level before eventually dipping through to $1.3766.
  • Rate recovered to $1.3790 before drifting back to that mentioned low into Europe.
  • Risk aversion eased Friday, with position adjustments into the weekend softening the USD. However, late Friday activity regarding Archegos Capital could have an adverse effect on risk when US markets open. Today being month-end value we could also see US corporate USD demand emerge into the NY session.
  • Support $1.3752/42, a break to open a deeper move toward $1.3729(Mar26 low) ahead of $1.3700, with the base of the 1.0% 10-dma envelope currently coming through at $1.3688 ahead of Thursday's low of $1.3670, $1.3663 Feb05 low. Resistance $1.3805/12, $1.3835/45, $1.3865/75.
  • UK Mortgage data and UK M4 due for release at 0830GMT(0930BST) in an otherwise light global data calendar.
  • Attention this week on Wednesday's month/fiscal year end and Biden speech. US NFP Friday, though many centres to be closed for Good Friday.
  • MNI Techs: GBPUSD maintains a bearish tone despite the recovery late last week. Cable has cleared its bull channel base from the Nov 2, 2020 low. Furthermore, price also traded through 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 1.3844, provides an initial firm resistance.
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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