GBP/USD Support Bounce into Fresh Two-Year-High
Like the Aussie post looked at earlier, this isn't a terrible venue if looking for continued USD-weakness. Tomorrow's Core PCE report is a big deal as this is the first piece of inflation data that we'll see after the Fed's 50 bp cut, and at this point rates markets have high expectations for even more softening and this will be spoken to with tomorrow's inflation report.
In yesterday's post I highlighted that that support test would show us how aggressive bulls remain to be and the response to that has so far been aggressive.
And while AUD/USD is holding around the .6900 handle, currently inside of the prior high, GBP/USD has already tested a fresh high showing a bit more potential here than there.
The big level lurking overhead in GBP/USD is the 1.3500 level and there's some historical reference there. If we do see a breakdown in the Dollar tomorrow, which I'd expect to need a significantly below expected print in Core PCE, that's a level that could soon come in the picture.
On the other side, for USD-strength, EUR/USD remains a bit more attractive as it's still within the confines of the longer-term range. - js
In yesterday's post I highlighted that that support test would show us how aggressive bulls remain to be and the response to that has so far been aggressive.
And while AUD/USD is holding around the .6900 handle, currently inside of the prior high, GBP/USD has already tested a fresh high showing a bit more potential here than there.
The big level lurking overhead in GBP/USD is the 1.3500 level and there's some historical reference there. If we do see a breakdown in the Dollar tomorrow, which I'd expect to need a significantly below expected print in Core PCE, that's a level that could soon come in the picture.
On the other side, for USD-strength, EUR/USD remains a bit more attractive as it's still within the confines of the longer-term range. - js
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