The dollar drifted higher yesterday amidst a lack of any real data to give the market impetus. Despite Friday’s double blow of rising inflation and falling industrial production, it is believed that the dollar is being supported by massive investment flows into US stocks from foreign investors.
Sterling was considerably weaker, closing below the important 1.4600 pivot level. This leaves a bearish tone for today, with the market looking to have firmly rejected the 1.4600+ area.
GBP EUR – Support 1.4552 then 1.4500
Resistance 1.4600 then 1.4675
GBP USD – Support 1.7475 then 1.7388 (recent low)
Resistance 1.7540 then 1.7635
DATA: UK CPI (09:30)
US Producer Price Index (13:30)
US Net Foreign Securities Purchases
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