United States Dollar:
GBP/USD whipped around between 1.6280 and 1.6340 yesterday, reaching the top of its range following comments from the Bank of England’s Mark Carney. He said that, “while there is always uncertainty about the future, you can expect interest rates to begin to increase”. Meanwhile, US economic data released yesterday, by way of August durable goods, was fairly strong, indicating that the US economic recovery is continuing. The dollar buying continued after the print and GBP/USD fell back to trade closer to the 1.63 big figure. It has since fallen to an overnight low of 1.6290. The main event today will be US Final GDP due at 1:30. Up until this point, we’re likely to see GBP/USD trade a steady range. We expect a range today in the GBP/USD rate of 1.6280 to 1.6360.
Euro:
EUR/USD has been pretty flat over the last 24 hours. It opens this morning at 1.2745, after it stopped under 1.26 yesterday morning – Draghi’s comments were the main culprit here. German GfK Consumer Climate data was a bit weaker this morning, but EUR/USD hasn’t really budged. GBP/EUR remains above 1.28 this morning – just – and again it’s likely that the range will be stable heading in to the end of the week. We expect a range today in the GBP/EUR rate of 1.2770 to 1.2850.
Aussie and Kiwi Dollars:
The kiwi has continued to lose ground over the last 24 hours, this after taking a battering from RBNZ Governor Wheeler’s jawboning earlier in the week. NZD/USD fell to a low of .7880 early this morning and opens in London at .7905. AUD/USD has also continued its decline as the commodity slide goes on, and trades at .8775. This means that both GBP/AUD and GBP/NZD are relatively high and sit at 1.8585 and 2.0630. We expect a range today in the GBP/AUD rate of 1.8450 to 1.8620. We expect a range today in the GBP/NZD rate of 2.0550 to 2.0720
Data releases for the next 24 hours:
AUD: No data
EUR: No data
GBP: No data
NZD: No data
USD: Final GDP q/q, Final GDP Price Index q/q, Revised UoM Consumer Sentiment.
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