Pound Gains on Hawkish BoE Remarks; Euro Regains Lost Ground
| Action Insight Mid-Day Report 7-8-24 |
Pound Gains on Hawkish BoE Remarks; Euro Regains Lost Ground |
Sterling strengthened broadly today, support by comments from Jonathan Haskel, a known hawk on BoE's MPC. Haskel indicated his preference to maintain interest rates until there is clear evidence that inflationary pressures have subsided sustainably. This stance has introduced some uncertainty regarding the widely anticipated BoE rate cut in August. While many economists still expect a rate reduction, upcoming economic data—such as this week's UK GDP report and next week's CPI figures—could still shift these expectations. Meanwhile, Canadian dollar ranks as the second strongest currency, closely followed by Euro. The common currency has recovered from earlier losses caused by the French parliamentary elections, which resulted in a hung parliament. The left-wing coalition secured the most seats, while the far-right group garnered the least among major coalitions. In contrast, Kiwi is the weakest performer, followed by Swiss franc, which is feeling the pressure from Euro's rebound. Dollar, Aussie, and Yen are mixed, with markets keenly awaiting key events such as Fed Chair Jerome Powell's testimony and the release of US CPI data later this week... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2773; (P) 1.2796; (R1) 1.2837; More... Intraday bias in GBP/USD remains on the upside as rally from 1.2612 is in progress for retesting 1.2859 resistance. Firm break there will resume the rally from 1.2298 and target 61.8% projection of 1.2298 to 1.2859 from 1.2612 at 1.2959. Decisive break there would prompt upside acceleration through 1.3141 to 100% projection at 1.3173. On the downside, below 1.2793 minor support will turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y May | 1.90% | 2.10% | 1.60% | | 23:50 | JPY | Bank Lending Y/Y Jun | 3.20% | 3.10% | 3.00% | | 23:50 | JPY | Current Account (JPY) May | 2.41T | 2.13T | 2.52T | | 05:00 | JPY | Eco Watchers Survey: Current Jun | 47 | 46.3 | 45.7 | | 06:00 | EUR | Germany Trade Balance (EUR) May | 24.9B | 19.9B | 22.1B | | 08:30 | EUR | Eurozone Sentix Investor Confidence Jul | -7.3 | 0 | 0.3 |
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