The macro scan published in the last week put on a good show with rise as well as the fall in British Pound well anticipated, while the gold remained capped around the said level as expected. Though the anticipated levels were not seen, the overall moves were in line with the expectations and fell a few pips short of the targets.
We begin the review with the first idea titled “GBP/USD could test 1.5480 ahead of tomorrow's Fed minutes†(Macro Scan 17th February,2015) published on 17th Feb. The GBP/USD pair clocked a high of 1.5478 on the Fed minutes day. Ahead of the release the pair was comfortably above 1.5450 levels, after having recovered from the low of 1.5315. The pair also remained bid above 1.5334 as expected.
The view on Gold titled “Gold could drop to USD 1182.8 on hawkish Fed minutes†(Macro Scan 18th February,2015) published on Feb. 18th , was contingent on the Fed minutes being hawkish. However, the minutes came out dovish thereby supporting gains in the yellow metal. Consequently, the metal clocked a high of USD 1214.6 post minutes release. The metal touched USD 1223.1 on Feb. 19th before inching lower to trade today at USD 1192.90/Oz levels. The move was pretty much in line with what was expected in the report – gains being capped at USD 1220-1225 “in case the Fed minutes provide a dovish surprise.â€
The last idea “GBP/JPY could drop to 181.50 on weak UK retail sales†(Macro Scan 19th February,2015) published on Feb 19th anticipated technical weakness in the GBP/JPY pair, which was supposed to be extended on weak retail sales print. The UK retail sales did decline month-on-month in January despite the rise in the employment and wages. Consequently, the GBP/JPY pair fell to a low of 181.64; just shy of the expected level of 181.50.
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