Cable and Eurodollar continued to rally yesterday, with sterling strength being the main theme in the markets. The dollar failed to rally on the Philadelphia Fed’ figures, which were hugely above analysts expectations (17.3 vs expected 10!!!). This was a sure indication that the appetite for dollars has diminished greatly over the past few days, and both cable and Eurodollar continued to grind higher.
UK Retail Sales were slightly better than expected yesterday, showing small growth on the month, but still an overall decline on the year.
UK GDP data (09:30) should show a 0.4% rise for the third quarter and 1.6% year on year. Anything below this could leave sterling vulnerable today.
GBP EUR – Support 1.4700-1.4720 then 1.4670
Resistance 1.4785 then 1.4870
GBP USD – Support 1.7700-35 then 1.7600
Resistance 1.7800-20 then 1.7930
DATA: UK GDP (09:30) – Expecting +0.4% on quarter, +1.6% on year.
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