FX News – August 29

FX Strategy Articles > FX Trading Tips

The USD traded stronger against most major currencies yesterday due to the continuing uncertainty on the rumored US military action in Syria. The exception was the GBP, which had a lift from BoE Governor Mark Carney's speech that was less dovish than expected.

In his speech, the Governor said that BoE is ready to provide fresh stimulus to the economy in case the rising interest rates would hinder its recovery. According to him, "our forward guidance was clear that, although we would not reduce the stimulus until the recovery is secure, we would if necessary provide more."

The stronger greenback pulled down the GBP/USD pair to below 1.5460 around the time of Governor Carney's speech. However, the speech helped it to recover quickly back to the 1.5530 zone, and is currently trading at 1.5526.

Initial resistance for the GBP/USD pair is seen at 1.5570, followed by 1.5609. Meanwhile, initial support is at 1.5459, followed by 1.5420.

The AUD/USD pair has so far remained around the 0.8940-0.8950 area during the opening of today's Asian session. News that could affect the pair today include updates on the situation in Syria, data from Australia (new home sales, private capital expenditures), as well as data and news from the US (GDP, weekly jobless claims, personal consumption expenditures, speech from US Fed's Bullard).

The AUD/USD pair is currently trading at 0.8942, with initial resistance seen at 0.9013, followed by 0.9036. Meanwhile, initial support is at 0.8906, followed by 0.8884.

With light data coming from both the Eurozone and the US today, the news on Syria will remain the main driver in the pair's performance for today.

The EUR/USD pair has made a significant drop below the 1.3315 zone yesterday before making a recovery to the 1.3340 area. The pair is currently trading at 1.3339, with initial resistance seen at 1.3436, followed by 1.3469. Meanwhile, initial support is at 1.3358, followed by 1.3324.

By FX Strategy Team, Published on 28th of August 2013
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