--Advertisement--

A firm UK Construction PMI offers support to the sterling

Global Markets

Sterling bulls gained some stability as Tuesday’s solid construction PMI announcement negated some of the fears regarding the potential slowdown in economic momentum within the UK economy. Despite economic data in October from the UK losing its robust touch, November has started strong and this secure construction PMI of 58.8 may add to the mounting expectations that growth in Q4 for the UK may exceed forecasts. This week’s focus for the Sterling will be the Bank of England (BoE) meeting on Thursday in which the possibility of a UK November rate hike remains slim. Sentiment for the GBP drifts towards bullish regions and a hawkish BoE Carney may invite GBP bulls to challenge the 1.5500 resistance on the GBPUSD.

Last week’s hawkish FOMC statement instilled WTI bulls with some upwards momentum. This commodity has enjoyed an appreciation of over $3 as expectations escalate that demand for oil may increase on the back of a hawkish Fed. Regardless of this upsurge, the central theme of oversupply will continue to enforce downwards pressures on the price of WTI in the long term. With Russia increasing oil output to post-Soviet highs of 19.78 million barrels a day and concerns of China growth lingering on in the global markets, sentiment for WTI remains bearish. WTI bulls are already threatened and prices will most likely remain depressed as the dominant theme of a reduction in demand for oil pulls prices back to the $44.00 support.

In the late part of Tuesday’s trading session, the focus may be directed to the dovish Mario Draghi. Market participants may use this evening’s speech to sift for any additional information concerning the decision the central bank may take in December. Even though the stance in the previous ECB conference suggested that the central bank may implement further QE in December, there could be a possibility that the ECB is in standby mode in wait for the Fed to act before moving forward in 2016.

Advertisement

CADJPY

The CADJPY is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. A breakout above the 92.50 resistance may open a path to the next relevant resistance at 94.20.

GBPJPY

Advertisement

The GBPJPY is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. As long as prices can keep above the 184.00 support, there may be an incline to the next relevant resistance at 187.50.

GBPCHF

The GBPCHF is technically bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD has crossed to the upside. As long as prices can keep above the 1.5100 support, there may be an incline to the next relevant resistance at 1.5400.

For more information please visit: ForexTime                      

Advertisement

 

 

Add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected from copying.