There is nothing to really trade today as price action was relatively subdued across major crosses and pairs ahead of this week's key risk events incl. RBA, BoE, ECB and BoJ rate decisions.
Here is a brief catch up on two currencies I’m looking at trading in the longer term and why.
The GBP is still a very bullish currency that is being driven by speculation ofa interest rate hike from the Bank of England by the end of 2014, the BOE are expected to become more hawkish imminently, leading to new gains on GBPUSD to around 1.7500. Most analysts see this change in tone starting with the Inflation Report on the 13th August 2014, after inflation recently hit the BOE’s 2%target.
I’ll be looking to start buying GBP/USD around 1.6800 to 1.6700 which is a good level of support with a long-term target of 1.7100 to 1.7500 in the coming months.
I’m still viewing the NZD as a bullish currency in the longer-term, this is because New Zealand has one of the most attractive investment yields and theNZD is a very attractive carry trade, especially against currencies with very low interest rates.
From this point on I am looking to buy NZDUSD back every time it dips to around 0.8500 – 0.8300, and especially against weaker currencies with a low or zero interest rate.
Pre Session events
AUD strengthened against its peers after better than expected Australian June Retail Sales (0.6% vs. Exp. 0.3%);the biggest jump since January 2014 and today’s calendar is relatively quiet ahead of a slew of central bank decisions (BoE, ECB, RBA, BoJ) all due later this week.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
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