Betting on a short-term rise in the GBP to USD exchange rate
- Written by: Gary Howes
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Today's foreign exchange rate call issued by FutureTechs suggests a Buy on the GBP to USD exchange rate.
In early trade in London we see the pound sterling softening against the US dollar; indeed we are witnessing declines right across the sterling complex ahead of today's GDP release at 09:30.
Nevertheless, the morning call from the team at FutureTechs is in, and they are bullish on sterling dollar.
A note issued on GBP to USD by FutureTechs is as such:
Short Term Trend: Bullish
Medium Trend: Bullish
Candlestick Chart says: We bounced from the 38.2% retrace on Monday and haven’t got going to the upside yet but this is our expectation
Profile Charts says: CHVN is 1.6656. Spent very little time below here yesterday.
Summary: 1.6606 is holding, albeit not as cleanly as we’d like.
Trade Idea: Buy above 1.6660, stop at 1.6620, targets 1.6725 and 1.6820. Low Conviction “Keeper”.
Time: 7.08am
US dollar maintains a tight range
A look at the US dollar exchange rate complex this morning shows that the US dollar has actually been incredibly restrained over the course of the past 24 hours.
Indeed, we could assume we are at the same place at 09:00 GMT as we were yesterday at 09:00 GMT:
Nevertheless, the conditions for further declines remain in place. UniCredit have offered this forecast for the euro dollar:
"With bullish conditions in place, there’s scope for a test of critical resistance at 1.3836. A break above which would open 1.3893. Support is at 1.3660 ahead of 1.3590."
The G10 currencies traded range-bound overnight, no major news came out.
In the US however, the unexpected drop in Richmond Fed’s manufacturing index from 12 to -6 in February (vs. 5 expected) witnessed the ongoing weakness in recovery. The consumer confidence deteriorated through February.
The S&P500 dropped 0.14%, Dow Jones and Nasdaq’s Composite lost 0.17% and 0.13% in New York.
The 10-year US yields eased below 2.70%, while DXY rebounded from 80.016.
A look at equity markets on Wednesday confirm bearish conditions remain in place.
