Ix market action today, 7 Aug
| close | open | high | low | |
|---|---|---|---|---|
| USD/JPY | 96.3600 | 97.7465 | 97.83Oo | 96.3250 |
| GBP/USD | 1.5488 | 1.5348 | 1.5532 | 1.5205 |
| AUD/USD | 0.9001 | 0.8988 | 0.9027 | 0.8920 |
| USD/CAD | 1.0423 | 1.0376 | 1.0447 | 1.0366 |
| NZD/USD | 0.7970 | 0.7901 | 0.8000 | 0.7883 |
GBP: The biggest move today was in GBP. Bank of England Inflation report and bank gov. Mark Carney's press conference resulted in
unemployment targeting (like the FED) and
small upward revisions of GDP forecasts
target int rate stays at .5%.
inflation target maintained at 2%
Carney provided forward guidance, essentially saying the bank won't increase interest rate or "taper" QE until unemployment falls below 7.0%. Currently, unemp is 7.8%. BoE's forecast shows expectation of high unemployment and continued QE to Q3 2016 Q3 (3 years from now).
BoE's GDP forecasts: 2013 revised up from 1.2% to 1.5%; 2014 revised up from 1.9% to 2.4%.
Despite Carney's warning that current growth is still slow by historical standards, the FX market considered this information to be extremely bullish for GBP. demand slowed at the end of the day. There is a strong technical resistance at 1.5750.
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JPY: Considerable USD/JPY profit taking ahead of BOJ announcement tonight/tomorrow am.
STC position to follow.
thank you
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