The Dollar made a new high against the Euro in early trade yesterday, but a sharp reversal ensued from there, and both Euro, Dollar and Cable ended the session looking fairly bullish. There is so much fundamental news already “built in” to the Dollar rally, so it’s not surprising to see it running out of steam around these levels. The EUR USD low was just 4 pips above the July low (major support).
Hurricane Wilma is also weighing slightly on the Dollar.
Sterling continued to rally strongly versus the Euro, breaking into new highs as I type. The MPC minutes revealed a unanimous 9-0 vote to leave rates unchanged at the last meeting, cementing growing expectations of no further cuts this year. This explains Sterling’s strength.
GBP EUR – Support 1.4700 then 1.4660
Resistance 1.4770 then 1.4835
GBP USD – Support 1.7595 then 1.7540
Resistance 1.7670 then 1.7733
DATA: UK Retail Sales 09:30 (expecting +0.6% on the month)
US Jobless Claims 13:30
Leading Indicators 15:00
Philadelphia Fed’ 17:00
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