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GBP expected to be swinging large moves in coming days

USD in divergence move with stronger against risk currencies and weakening against the YEN and CHF. With more steadiness to EURUSD upon the divergence move on current risk sentiment fragile situation, another day for DJI with -4.15% or 1032.89 points which driven more risk off trades. As YEN and CHF cross ended up lowering that leads both USDJPY and USDCHF to go lower in due course.

EUR consolidation around 1.22-1.23 and digests the EUR cross move as well as the consolidation after recent gains.

GBP in roller coaster situation from first flying up to 1.4067 with hawkish BOE and raises the growth together by mentioning a higher inflation this year that will exceeds 2% around 2.28%. Which  sends the yield to go up and the market now pricing 72% of May hiked up and fully higher priced on August. Topside of GBP lacking of follow through with DJI lowering starts for the unwinding GBP cross and long liquidation for GBP which driven for its backing down to 1.3880 before close around BOE announcement time around 1.3910. Sentiment mix in short term and most are focusing in fast trading pattern with Brexit uncertainty remains although still expect GBP in large swinging move in coming days.

Commodity currencies retraces back and with a higher UST yield it will still driven more USD demands against those currencies in short term. Especially after the more neutral bias for RBA and RBNZ meeting this coming week.

Today US Wholesale Inventories and stock/bond market move will have some intraday impact.

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    Research Risk Warning

    At Hantec Global Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.