GBP/USD dependent on upcoming GDP figures for Q2

GBP/USD dependent on upcoming GDP figures for Q2

Sinduja Venkat

Good morning and welcome to today’s foreign exchange market commentary on 24th of July. 

Here are MyCurrencyTransfer.com’s top 5 currency highlights:

  • GBP/USD dependent on upcoming GDP figures for Q2
  • EUR advances against most peers on positive data
  • USD jumps on strong housing numbers
  • USD/JPY breaches 100.00 during quiet Asian session
  • AUD/USD establishes week long period of congestion

CURRENCY RATES OVERVIEW 

GBP/EURO – 1.1616
GBP/USD – 1.5364
GBP/CHF – 1.4374
GBP/CAD – 1.5820
GBP/AUD – 1.6723
GBP/ZAR – 14.9822
GBP/JPY – 153.9982
GBP/HKD – 11.9191
GBP/NZD – 1.9340
GBP/SEK – 9.9802

Mid-market rates as of 2013-07-24 16:00 UTC

Key releases in the next 24 hours that may affect currency date:

Australia: AUD Consumer Prices Index (QoQ) (2Q), AUD Consumer Prices Index (YoY) (2Q)
Europe: EUR German Purchasing Manager Index Manufacturing (JUL A), EUR German Purchasing Manager Index Services (JUL A), EUR Euro-Zone Purchasing Manager Index Manufacturing (JUL A), EUR Euro-Zone Purchasing Manager Index Services (JUL A), EUR Euro-Zone Purchasing Manager Index Composite (JUL A)
United Kingdom: No Data
New Zealand: NZD Reserve Bank of New Zealand Rate Decision (JUL 25)
United States of America: USD Markit US PMI Preliminary (JUL), USD New Home Sales (MoM) (JUN)     
 China: CNY HSBC Flash Manufacturing PMI (JUL)
Canada: No Data
Japan: JPY Japan Buying Foreign Bonds (Yen) (JUL 19), JPY Japan Buying Foreign Stocks (Yen) (JUL 19)

GBP/USD dependent on upcoming GDP figures for Q2

The GBP/USD foreign exchange rate is last quoted at 1.5326 ahead of key risk event which is the release of UK GDP for Q2 at 08:30 GMT. GBP/USD pair is as of now dependent on UK GDP. Analysts predict that it could be a choppy trading session while the trend expected remains slightly bullish. The GDP will be the key driver for Sterling today and would suspect that a range of 1.5280/1.5380 could be the region of action during the event.

EUR advances against most peers on positive data

Euro advances as Eurozone economic readings for the day come in on an optimistic note. With the exception of EUR/ USD, the euro managed a positive close against all its most liquid counterparts. Though the medium-term outlook is still troubling for the shared currency, the market was delivered short-term relief in the form of growth related economic data and another snuffed fire in Greece. The first round Eurozone PMI activity figures for July printed unexpectedly strong numbers.

USD jumps on strong housing numbers

The US Dollar made a pronounced comeback against Sterling during the latter part of Wednesday’s afternoon’s session. The move saw the GBP/ USD tumble to 1.5200 during the hours following the European equities close. Support for the Greenback was triggered by a highly positive set of US housing market figures which revealed a monthly jump of 8.3% in the number of new home sales in the States during the month of June.

USD/JPY breaches 100.00 during quiet Asian session

Another quiet session in Asia-Pacific was observed on Wednesday for USD owing to no risk events taking place. USD/JPY traded at 100.15, ahead of German Ifo at 08:00 GMT. Local share markets were observed to be slightly in the red all over the Asia-Pacific, with Korean Kospi and the Shanghai index still trying to break even, while the Nikkei index is down -0.41%.

AUD/USD establishes week long period of congestion

The AUD/USD pair established a weeks-long period of congestion following a significant decline, expectations that a 0.9300 breakout was at hand were high. There were two main economic indicators for the Aussie dollar. The country’s 4Q CPI update was up first, and a recent shift in expectation for the RBA to ease up from its rate cut regime set a bullish bias. This was topped off by the weak Chinese manufacturing activity report for July that printed an 11-month low.

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