FX News – Aug 30: UK Parliament Rejects Syria Action; EUR/USD Lower

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The market heaved a sigh of relief as the UK’s House of Commons rejected an attack on Syria, voting 275-235. This lowered the possibility of military action on Syria, at least this weekend.

Aside from the Syrian situation, the vote could also be read as having a negative impact on the British leadership, particularly Prime Minister David Cameron.

The GBP/USD pair somehow recovered today after sliding during the early part of yesterday's European session. The pair dipped to a low of 1.5492 before making a steady climb above the 1.5500 zone and is currently trading at 1.5519.

Other news that could affect the pair include BoE Governor Carney's statement earlier this week, as well as several data from the UK and US, including British Housing Prices, British Mortgage Approvals, US Personal Income and Spending, and US Chicago PMI.

Initial resistance for the GBP/USD pair is at 1.5527, followed by 1.5565. Meanwhile, initial support is at 1.5461, followed by 1.5422.

The EUR/USD pair remained in the 1.3220-1.3250 zone today after Germany posted disappointing Retail Sales data (MoM, July). From the previous -0.8%, it fell -1.4%, instead of improving by 0.5% as analysts expected. The YoY data was somehow better, however, as it went from the previous -2.4% and improved by 2.3%, which was better than the 2.0% expected earlier.

News relevant to the pair today include EU Consumer Confidence (August), EU CPI, EU Unemployment Rate (July), and the EU Economic Sentiment.

The pair is currently trading at 1.3230, with initial resistance seen at 1.3293, followed by 1.3327. Meanwhile, initial support is at 1.3167, followed by 1.3134.

We’ll start with a fresh month next and here are some events traders need to follow: interest rate decisions from Australia (Tue, 3 Sept), Canada (Wed, 4 Sept), Japan (Thu, 5 Sept), UK (Thu, 5 Sept); Unemployment data from the US and Canada; and GDP data from Japan and the EU.

By FX Strategy Team, Published on 30th of August 2013
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