InvestMacro FX

The Reserve Bank of Australia decided to hold its interest rate at its lowest standing since 1960 at 3.00 percent today. Today’s rate decision was widely expected and follows a reduction of 25 basis points in April.  The RBA has slashed the interest rate by a total of 425 basis points since September 2008 in response to the global economic downturn.

Glenn Stevens, RBA Governor of Monetary Policy, commented on the Australian economy in the bank statement saying, “The Australian economy contracted in the latter part of 2008, and this has continued in 2009 to date, with both domestic and international demand weaker. Capacity utilisation has fallen back to about average levels, and will decline further over the rest of the year. With demand for labour weakening, growth in labour costs will probably also fall. These conditions are likely to see inflation continue to abate, though this is occurring only gradually so far, as the effects of the decline in the exchange rate are pushing up some prices.”

Stevens said that the global economy has continued to contract in 2009 but that there “are further signs of stabilisation in several countries.”

“The Chinese economy in particular has picked up speed in recent months and many commodity prices have firmed a little. The considerable economic policy stimulus in train in most countries should help contain the downturn and support an eventual recovery.”

The Australian dollar has traded higher in currency trading against most of the major currencies today after the rate announcement. The Australian dollar has advanced versus the U.S. dollar to trading at 0.7424 AUD per USD at 11:09am EST after opening at the exchange rate this morning of 0.7382(00:00 GMT).

The Aussie dollar has increased versus the Japanese yen with the AUD/JPY trading at 73.31 from today’s opening exchange rate of approximately 72.82. The euro has fallen versus the aussie today as the EUR/AUD trades at 1.7993 aussie per euro after opening the day at approximately 1.8111.

The aussie dollar has advanced against the Canadian dollar as the AUD/CAD trades at 0.8734 after opening the day at at 0.8570. Meanwhile, against the New Zealand dollar, the aussie has fallen as the AUD/NZD has gone from the 1.2825 opening rate to trading at 1.2777 later in the American trading session.

AUD/USD Chart – The Australian Dollar advancing versus the US Dollar in Forex Trading today and reaching its highest exchange rate since October 2008.

By Fast Brokers

The EUR/USD bounced well from the inflection point of our 2nd tier uptrend and 3rd tier downtrend lines.  Though the volume wasn’t significant, the action was enough to get the EUR/USD beyond 4/30, and subsequently 4/13 highs.  Since the volume to the upside wasn’t anything out of the ordinary, we could witness the present rally top out soon.  Hence, although we are still bullish on the EUR/USD trend-wise, we are neutral/negative for the near-term.  Short term evaluation aside, the EUR/USD continues to make noteworthy strides fundamentally.

Given U.S. equities continue their path to recovery, the EUR/USD should follow suit considering their strong positive correlation.  The EUR/USD is comfortably above our uptrend lines, and the main downtrend barriers left is our 3rd tier downtrend line and the psychological 1.35 level.  If the currency pair can manage to climb through these two barriers, there could be little holding back the EUR/USD from logging exciting gains.  Meanwhile, we expect to EUR/USD to remain positive correlated with the S&P futures for the next few sessions as investors eagerly await the ECB’s meeting on Thursday.  That being said, we wouldn’t be surprised to see U.S. equities hesitate with the S&P sitting at its critical 900 level while investors also await the release stress tests on Thursday.

The ECB’s meeting on Thursday will be critical since the ECB governors have offered various opinions as to the direction of the central bank’s monetary policy.  The ECB has maintained its benchmark rate at a respectable level while avoiding liquidity measures such as quantitative easing.  The uncertainty among investors could keep any uptrend in check as investors eagerly await results from the meeting.  The ECB’s announcement will come on the same day as America’s stress test results, meaning we expect to see a large spike in volatility on Thursday.

Fundamentally, we maintain resistances of 1.3389, 1.3420, 1.3442, 1.3479, and 1.351.  To the downside, we hold supports of 1.3358, 1.3323, 1.3283, 1.3241, and 1.3211.  The 1.30 area serves as a psychological cushion with 1.35 acting as a psychological barrier.  The EUR/USD is currently exchanging at 1.3390.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers

Over the last 24 hours the Cable has made some of the most notable strides amongst the major Dollar pairs.  The GBP/USD has bolted past the highly psychological 1.50 level and April highs in a single swing.  Strength in the Cable comes after Britain hit another home run with its Construction PMI release.  Hence, we have seen encouraging improvements in most all of Britain’s economy, giving investors little reason to hesitate in sending the GBP/USD higher since U.S. equities are on a roll.  However, we haven’t seen a confirmation in volume on the Cable’s up-bars, meaning the currency pair could soon top out in the near-term as investors may hesitate with the S&P 900 while awaiting stress test Thursday.  Despite our near-term hesitation, we maintain our bullish outlook trend wise.  The GBP/USD continues to surpass key technical barriers and is leaving our downtrend lines behind, meaning the uptrend should have considerable room to grow.

Britain will release Nationwide Consumer Confidence later in today’s session followed by the Halifax HPI and Services PMI early Wednesday.  Last week’s Nationwide HPI came in well above analyst expectations, so it will be interesting to see if tomorrow’s Halifax number relays the same message of stabilization in home prices.  America’s Pending Home Sales blew by expectations yesterday, so a resounding message of recovery in housing builds a solid foundation for the uptrend to spring from.

Fundamentally, we find resistances of 1.5160, 1.5213, 1.5257, 1.5306, and 1.5349.  To the downside, we see supports of 1.5059, 1.5017, 1.4988, 1.4946, and 1.4902.  1.50 becomes a key psychological cushion with 1.55 acting as a psychological barrier. The GBP/USD is currently exchanging at 1.5152.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers

The USD/JPY is trying to build on Friday’s bounce, flirting with the idea of retesting 100 while the S&P futures battle their own demons at 900.  Unfortunately, yesterday’s run was backed by light volume, meaning the currency pair’s current upswing could be short-lived.  The USD/JPY encounters its first test in our 3rd tier downtrend line, followed by March highs.  We notice a head and shoulders formation with the USD/JPY on its right shoulder as we type.  Therefore, bulls will be looking for any near-term upward movement to be supported by heavy volume if the currency pair is ready to surpass 100 and April highs.

While the upside has its apparent hurdles, the downside is backed by our 2nd tier uptrend line and the resilience the uptrend has shown thus far in 2009.  The USD/JPY’s re-approach of 100 comes with the S&P futures attempting to climb above their critical 900 level.  Therefore, the significance of the moment is relayed by each as investors await Thursday’s ECB meeting and the release of America’s stress test results.

Fundamentally, we find resistances of 99.20, 99.79, 100.56, 101.43, and 102.14.  To the downside, we see supports of 98.56, 97.98, 97.11, 96.33, and 95.58.  The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion.  The USD/JPY is currently exchanging at 98.68.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

Source: ForexYard

For the year thus far, the S&P 500 index is in positive territory. With this news the price of Crude Oil has also risen to its yearly high. However, the added buoyancy is hurting the Dollar as traders are taking on greater risk with higher yielding currencies and swapping out their safe-haven investments.

Economic News

USD – Rising Stocks and Housing Data Hurt the Dollar

The Dollar continued its upward correction as a rise in stock markets and better than anticipated economic data fueled further risk-taking in the forex market. The EUR/USD was under pressure during trading hours in Japan and Europe, falling throughout the day. However, the pair failed to break a key support line at 1.3200 and reversed course. Driving this appreciation of the pair were gains in equity markets. The Dow Jones Industrial Average finished the day up 2.61%. Adding further to risk appetite in the market was the release of better U.S. Pending Home Sales data. The release came in surprisingly high, contributing to the sell-off of the Dollar.

Prices could have been exaggerated earlier in the day as liquidity was light due to Japanese markets being closed for “Golden Week”. We may expect further weakness in the Dollar’s crosses as expectations abound to the easing of the global economic recession. This may be seen extensively against currencies linked to commodity prices such as the Aussie Dollar (AUD) and New Zealand Dollar (NZD).

Two major events are on tap for today’s trading. The Institute for Supply Management (ISM) will release its Non-Manufacturing PMI report. This indicator is a key gauge of economic activity and expansion. The reading is expected to show moderate improvement from the previous month’s release. A second event will be testimony from Federal Reserve Chairman Ben Bernanke on the economic outlook before the Joint Economic Committee of Congress. His comments may hint at an improving economic environment, which may in turn hurt the Dollar. We could see the EUR/USD test the 1.3600 resistance line today.

EUR – EUR Continues Bullish Correction

The EUR has risen the past 3 trading sessions against the Dollar. Yesterday was no different as European investors had reason to cheer as positive momentum was given by the Purchasing Manager’s Index reading. This release, along with gains in stock markets helped to boost the EUR against the major currency pairs. The EUR finished at $1.3376 from $1.3315. The EUR/JPY was higher at 132.10 from 131.35. Also the EUR/GBP finished stronger at 0.8945 from 0.8890.

The 16-nation currency has reason to be satisfied in recent days considering the sudden surge in foreign investment, largely due to uncertainty across the safe-haven spectrum. As traders look elsewhere for riskier investments, the Euro-Zone apparently ranks high on the list, and the EUR and GBP appear to be reaping the rewards.

We may see higher-than-average volatility for EUR pairs as traders position themselves over the next few days for the European Central Bank’s (ECB) Interest Rate decision. The market will be looking for not only a 25 point basis rate cut, but also for a quantitative easing program. This would be enacted similar to the program undertaken by the U.S. Federal Reserve to purchase long-term government securities. A failure by the ECB to enact such a program could send the EUR sharply lower against the Dollar.

JPY – Yen Hits 3-Week Low vs. EUR

The Yen has reached a 3-week low against the EUR amid speculation the global recession is easing. The upcoming release of U.S. stress tests is also a negative for the Yen. This has traders dumping the Japanese Yen in favor of riskier, higher yielding currencies. Against the Dollar, the Yen has reversed a bit from its bullish run of the past week. Yesterday the USD/JPY finished the day at 98.80 from 99.45.

Trading during the Japanese session could have higher volatility due to the holiday which concludes Thursday. This time period could have prices pushed further than expected, and the Yen driven by events occurring outside the Japanese economy. Two key events that traders will need to be mindful of for the Yen will be release of U.S. bank stress test results on Thursday and U.S. Non-Payrolls on Friday.

Crude Oil – Crude Hits Yearly High

The price of Crude Oil hit its yearly high during yesterday’s trading as gains in equity markets and heightened optimism helped rally the commodity’s price. An improvement in the global economy will help to boost the demand for energy consumption, adding to the price of Crude Oil. The S&P 500 finished the day in positive territory for the current year, and the weakness of the Dollar has helped to support Crude prices. The price of Crude Oil closed yesterday at $54.00 from $53.20.

Further consensus that the economy is set for a rebound may continue to support the price of Crude Oil. During today’s trading we could see a slight pullback below the $54 mark as traders may be inclined to book profits. However, tomorrow’s Crude Oil Inventories report could send the price back above this level, perhaps breaking the $55 resistance line.

Technical News

EUR/USD

The bullish trend is losing its steam and the pair seems to be consolidating around the 1.3390 level. The 4-hour chart’s Slow Stochastic is showing a fresh bearish cross suggesting that a downwards correction might take place in the nearest time frame. When the downwards breach occurs, going short with tight stops appears to be a preferable strategy.

GBP/USD

The price of this pair appears to be floating in the over-bought territory on the daily chart’s RSI, indicating a downward correction may be imminent. The downward direction on the 4-hour chart’s Momentum oscillator supports this notion. When the downwards breach occurs, going short with tight stops appears to be the preferable strategy.

USD/JPY

There is a fresh bullish cross forming on the 4-hour chart’s Slow Stochastic indicating a bullish correction might take place in the nearest future. The upward direction on the hourly chart’s Momentum oscillator also supports this notion. When the upward breach occurs, going long with tight stops could be a good choice today.

USD/CHF

The hourly chart is showing mixed signals with its RSI fluctuating in the neutral territory. However, there is a fresh bullish cross forming on the 4- hour chart’s Slow Stochastic, indicating a bullish correction might take place in the nearest future. When the upwards breach occurs, going long with tight stops may be a wise choice.

The Wild Card – Gold

Gold prices rose significantly in the last week and peaked at $903.75 an ounce. However, the 4-hour chart’s RSI is floating in the over-bought territory suggesting that the recent upwards trend is losing steam and a bearish correction is impending. This might be a good opportunity for forex traders to enter the trend at a very early stage.

Forex Market Analysis provided by Forex Yard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Fx Research

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The euro moved higher vis-à-vis the U.S. dollar today as the single currency tested offers around the US$ 1.3425 level and was supported around the US$ 1.3210 level.  The common currency has been bid higher over the past several sessions as U.S. equity markets have staged a recovery.  The S&P has erased its year-to-date losses. Data released in the U.S. today saw March 2009 total construction activity up +0.3% m/m and off 11.1% y/y.  Additionally, March pending home sales were up +3.2%. Federal Reserve Chairman Bernanke testifies tomorrow and traders will be closely scrutinizing his comments to learn his current assessment of the economy.  More importantly, dealers want any information they can glean about the results of the banks’ stress tests.  In addition to indications that Citigroup and Bank of America will be forced to obtain additional capital, there is talk that Wells Fargo may be forced to seek more capital.  In eurozone news, German finance minister Steinbrueck said he is concerned with the rise in unemployment in several European Union countries.  German economics minister Guttenberg said Germany must reach a solution “rather quickly” to establish bad banks to acquire banks’ toxic assets.  Data released in the U.S. today saw EMU-16 April manufacturing contract to 36.8, marginally better than expected.  Also, the EU Sentix investor confidence indicator improved to -34.3 from -35.3 in April.  It was also reported that German March retail sales were off 1% from February.    Euro bids are cited around the US$ 1.2765 level.

¥/ CNY

The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥98.70 level and was capped around the ¥99.55 level.   Japanese Golden Week holidays continue and liquidity is reduced in the Tokyo market.  Finance minister Yosano said major economies must support demand by taking appropriate “fiscal and monetary measures” to counter the global economic recession.  Last month, the government announced an economic stimulus package valued at about ¥57 trillion that included about ¥15.4 trillion in fresh spending and tax cuts.  Bank of Japan is expected to continue its quantitative easing policies for several months.  The Nikkei 225 yesterday stock index will next reopen at ¥8,977.37.  U.S. dollar offers are cited around the ¥104.15 level.  The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥132.85 level and was supported around the ¥131.30 level.  The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥149.15 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.10 level.  In Chinese news, the U.S. dollar ended at CNY 6.8225 in the over-the-counter market.

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The British pound appreciated vis-à-vis the U.S. dollar today as cable tested offers around the US$ 1.5020 level and was supported around the $1.4835 level. Cable approached its highest level since 12 January.  Cable bids are cited around the US$ 1.4735 level.  The euro moved higher vis-à-vis the British pound as the single currency tested offers around the ₤0.8945 level and was supported around the ₤0.8885 level.

Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

U.S. Pending Homes sales rose more than expected in the month of March according to the monthly report produced by the National Association of Realtors. The NAR report showed that pending home sales contracts signed by buyers increased by 3.2 percent in March following a revised 2.0 percent gain in February. Market forecasts had predicted the sales data would show no change or remain flat for the month. The pending home sales level is 1.1 percent above the March 2008 level.

NAR chief economist Lawrence Yun commented in the report about the increased sales figures this month, “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment.”

Regionally, pending home sales increased the most in the southern United States with a 8.5 percent rise in March.  Sales also increased in the west by 3.9 percent while decreases were seen in the northeast by 5.7 percent and the midwest by 1.0 percent for the month. On an annual basis, sales gains were registered in the south, west and midwest by 7.7 percent, 1.7 percent and 8.2 percent, respectively.  The northeast pending home sales have fallen by 24.1 percent on an annual basis.

US Dollar lower in forex trading.

The U.S. dollar has been trading lower in forex trading against the major currencies in the US morning session today. The dollar has fallen against the euro, Australian dollar, British pound, Japanese yen, Swiss franc and Canadian dollar while trading about unchanged against the New Zealand dollar.

The euro has advanced versus the dollar as the EUR/USD has gone from today’s 1.3323 opening exchange rate at 00:00 GMT to trading at approximately 1.3364 in the morning of the US trading session at 11:41am EST according to currency data by Oanda.

The British pound has increased today versus the American currency from 1.4959 to trading at 1.4984 dollars per pound. The dollar has decreased against the Canadian dollar after the USD/CAD’s opening at 1.1819 earlier today to trading at 1.1781 later.

The Australian dollar has also traded higher versus the USD as the AUD/USD trades at 0.7386 after opening today at 0.7348 while the New Zealand dollar is virtually unchanged versus the USD and trades at 0.5742 after opening at 0.5741.

The dollar has decreased against the Japanese yen today as the USD/JPY has come down from its 99.46 opening to trading at 99.10.

Meanwhile, the USD has fallen against the Swiss franc today as the USD/CHF has declined from the 1.1338 opening to trading at 1.1280.

GBP/USD Chart – The British Pound Sterling advancing today against the US Dollar in Forex Trading and looking to advance above the notable 1.5000 exchange rate level.

By Fast Brokers

Today’s early rally in gold is selling off as the upward movement failed to attract substantial volume.  Meanwhile, the precious metal is drifting below the highly psychological $900/oz mark and 4/29 highs.  Gold remains lodged in our downtrend dating back to February with the S&P futures approaching their own highly psychological 900 level.  What should stick out are the counterbalancing momentums as the negatively correlated investment vehicles battle with their respective critical levels.  With the upward momentum seemingly on the side of U.S. equities, it is difficult to have a positive outlook on the precious metal right now trend wise.  However, the performance of gold has been particularly unpredictable, so there may be more reliable investment vehicles out there.  To the downside, the next stop for gold appears to be our 2nd tier uptrend line and our $884.70/oz support.  If the precious metal can manage to climb back above today’s high, then the next meaningful barrier would likely be our $897.30/oz resistance.

Today’s activity should come down to the Pending Home Sales data release from the U.S.  Even though we maintain our bearish outlook on gold trend-wise, we wouldn’t be surprised to see a near-term pop in the precious metal should U.S. equities hesitate at 900.

Fundamentally we find resistances of $894.04/oz, $897.30/oz, $899.72/oz, $903.59/oz, and $906.42/oz.  To the downside, we see supports of $889.87/oz, $887.31/oz, $884.70/oz, $882.53/oz, and $880.03/oz. Gold is currently trading at $890.65/oz.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers

The USD/JPY is trying to build on Friday’s bounce, flirting with the idea of retesting 100 while the S&P futures battle their own demons at 900.  Unfortunately, yesterday’s run was backed by light volume, meaning the currency pair’s current upswing could be short-lived.  The USD/JPY encounters its first test in our 3rd tier downtrend line, followed by March highs.  We notice a head and shoulders formation with the USD/JPY on its right shoulder as we type.  Therefore, bulls will be looking for any near-term upward movement to be supported by heavy volume if the currency pair is ready to surpass 100 and April highs.

While the upside has its apparent hurdles, the downside is backed by our 2nd tier uptrend line and the resilience the uptrend has shown thus far in 2009.  The USD/JPY’s re-approach of 100 comes with the S&P futures attempting to climb above their critical 900 level.  Therefore, the significance of the moment is relayed by each as investors await Thursday’s ECB meeting and the release of America’s stress test results.

Fundamentally, we find resistances of 99.79, 100.56, 101.43, 102.14, and 103.15.  To the downside, we see supports of 99.20, 98.56, 97.98, 97.11, and 96.33.  The 100 level serves as a key psychological barrier with 95 acting as a psychological cushion.  The USD/JPY is currently exchanging at 99.42.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.

By Fast Brokers

The rally in the Cable is pulling back after Friday’s insufficient volume failed to push the GBP/USD above the highly psychological 1.50 mark and April highs, the two barriers to a lasting uptrend.  If volume wanes, we wouldn’t be surprised to see more profit-taking in the currency pair.  The Cable has ducked back below our 3rd tier uptrend line while our 2nd tier uptrend and downtrend lines reach an inflection point.  There is plenty of room between present price and our 2nd tier uptrend line, meaning the GBP/USD could have overextended itself.  Therefore, if our present 1.4826 support doesn’t hold, it looks like the next stop for the Cable could be our 1.4730 level.  Despite near-term downward pressure, momentum remains to the upside since we saw some encouraging data again from Britain last week.  Furthermore, the GBP/USD remains positive correlated with the S&P futures, which made some impressive strides of their own last week.

While volume could be light today, action should pick up as we approach Thursday’s ECB press conference and the release of the highly anticipated stress test results.  Britain has a banking holiday today, meaning we won’t see any data until tomorrow’s Halifax HPI, Construction PMI, and Nationwide Consumer Confidence.  The Halifax HPI comes a day after America’s Pending Homes Sales release, so we will get a better picture of the housing industry in both economies.  If the data points come in better expected then we could see a nice boost to the upside in the GBP/USD.

Fundamentally, we find resistances of 1.4880, 1.4905, 1.4951, 1.5009, and 1.5059.  To the downside, we see supports of 1.4826, 1.4773, 1.4730, 1.4677, and 1.4626.  1.45 serves as a psychological cushion with 1.50 acting as a key psychological barrier. The GBP/USD is currently exchanging at 1.4856.

Market Commentary provided by Fast Brokers.

Disclaimer: FastBrokers’ market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.

Risk Disclosure: There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.