9 Oct 2013
Flash: GBP/USD: New October Lows in the Cards? – TD Securities
FXstreet.com (London) - Research teams at TD Securities said UK data releases today were all around disappointing, with industrial and manufacturing production as well as trade data for August all notably missing expectations.
Key Quotes:
“The releases knocked GBP/USD lower, adding to the broad support that we are still seeing for the USD”.
“For the North American session, the focus for the pair today will be on the FOMC minutes where expectations are for a dovish message that will reinforce the committee’s no-tapering decision”.
“That leaves the bigger risk for a not-so-dovish message that could help add further support to the USD”.
“Technically speaking, a head & shoulders on the short term charts also suggests GBP/USD could see new October lows in the near term (H&S target is near 1.5750)”.
“The BoE tomorrow should be a non-event with no change to the policy rate or the asset purchase program. The one clear risk is that this is the month they decide to start releasing their monthly statements—leaving some potential for GBP shock”.
Key Quotes:
“The releases knocked GBP/USD lower, adding to the broad support that we are still seeing for the USD”.
“For the North American session, the focus for the pair today will be on the FOMC minutes where expectations are for a dovish message that will reinforce the committee’s no-tapering decision”.
“That leaves the bigger risk for a not-so-dovish message that could help add further support to the USD”.
“Technically speaking, a head & shoulders on the short term charts also suggests GBP/USD could see new October lows in the near term (H&S target is near 1.5750)”.
“The BoE tomorrow should be a non-event with no change to the policy rate or the asset purchase program. The one clear risk is that this is the month they decide to start releasing their monthly statements—leaving some potential for GBP shock”.