Back
20 Jun 2013
GBP/USD drops over 200 pips
FXstreet.com (London) - GBPUSD dropped from 1.5668 to 1.5460 and drifted lower still until 1.5430 after the release of the FOMC.
GBP/USD reacting to FOMC
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Today we have more data for the pair in the form of Retail sales for the UK (8.30GMT), which may surprise to the upside and Fisher speaking a little later on. Then, for the US, Initial Jobless Claims (12.30GMT) Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
GBP/USD treading key support
GBP/USD is treading just above key support 1.5404 EMA50 on the open of the London session, with indicators in the red. Next support is the 61.8% fib at 1.5377, and 1.5307 as 50%fib, targeting in broader terms 1.5008 and 1.4833 to the down side.
GBP/USD reacting to FOMC
Last night came the release of FOMC, when the market listened to the committee’s statement. While there were no changes to the current pace of QE, a comment was made as follows: "the downside risks to the outlook for the economy and the labor market as having diminished since the fall”, which sent the market in a ‘risk-off’ flurry again in broad based dollar rally. In all, the statement was a little more upbeat on the economy but showed little concern about inflation, except there being a more upbeat unemployment rate which might bring in a rate hike in a little closer. Today we have more data for the pair in the form of Retail sales for the UK (8.30GMT), which may surprise to the upside and Fisher speaking a little later on. Then, for the US, Initial Jobless Claims (12.30GMT) Markit Manufacturing (12.58 GMT), Existing Home sales Change and Philly Fed (14.00GMT).
GBP/USD treading key support
GBP/USD is treading just above key support 1.5404 EMA50 on the open of the London session, with indicators in the red. Next support is the 61.8% fib at 1.5377, and 1.5307 as 50%fib, targeting in broader terms 1.5008 and 1.4833 to the down side.