INTERNATIONAL CURRENCY BUZZ
Forex – Dollar Slips Lower, Euro Pushes Up to Day’s Highs
Forex – EUR/USD unchanged above 1.1700 post-US Retail Sales
Forex – GBP futures: upside corrective near term
EUR/USD keeps the positive stance intact at the beginning of the week, although it has now receded from tops beyond 1.1720 in the wake of US data releases. The pair trades in the area of 3-day peaks after US headline Retail Sales expanded at a monthly 0.4% during June and Core Sales rose 0.5% inter-month, both prints coming in in line with initial estimates. In addition, the NY Empire State manufacturing index
came in above expectations at 22.60 for the current month, a tad lower than June’s 25.00 reading. Looking ahead, spot is poised to remain under scrutiny in light of headlines from the Trump-Putin meeting and the upcoming testimonies by Fed’s J.Powell on Tuesday and Wednesday. At the moment, the pair is gaining 0.21% at 1.1714 and a break above 1.1726 (high Jul.16) would target 1.1735 (55-day sma) en-route to 1.1792 (high Jul.9). On the other hand, the immediate support aligns at 1.1657 (21-day sma) seconded by 1.1615 (low Jul.13) and finally 1.1527 (low Jun.29).
GBP/USD has lifted to kick off the week’s trading, testing into the 1.4000 handle in the pre-London markets. The Sterling is capitalizing on Dollar buying taking a break in the early week, with Brexit concerns currently forgotten as an increasingly hawkish outlook from the Bank of England (BOE) takes center stage for the pair. BOE Deputy Governor Dave Ramsden turned surprisingly hawkish over the weekend, after voting against a rate increase last November. Deputy Governor Ramsden went on record, stating he expects a rate increase “somewhat sooner rather than somewhat later”, sparking some confidence in the Sterling. Brexit continues to weigh on the Sterling in the underlying, with hardline Brexiteers within Prime Minister May’s ruling Conservative party continuing to rage against PM May’s ‘soft Brexit’ approach to negotiations with the EU.