 Sterling drops notably today after BoE delivered no hawkish surprise. While it sounded upbeat on the outlook, the MPC, except chief economist Andy Haldane, would prefer to wait until August to take any policy actions. Dollar is also soft after weaker than expected jobless claims and durable goods orders. On other other hand, New Zealand Dollar is currently the strongest, followed by Yen and than Euro. US futures are currently pointing to higher open and we'd see if markets would extend risk-on rally, and pressure Dollar and Yen again. Technically, GBP/USD appears to be rejected by 4 hour 55 EMA, but that's more likely due to selling in Sterling that buying in Dollar. Eyes will be on 0.8600 resistance in EUR/GBP and break will suggest completion of the choppy decline form 0.8718. That could add to the case of more downside for the Pound. On the other hand, rejection by 4 hour 55 EMA in EUR/USD could argue that Dollar has completed a general corrective retreat. In Europe, at the time of writing, FTSE is up 0.43%. DAX is up 0.68%. CAC is up 0.96%. Germany 10-year JGB yield is down -0.0051 at -0.178. Earlier in Asia, Nikkei rose 0.00%. Hong Kong HSI rose 0.23%. China Shanghai SSE rose 0.01%. Singapore Strait Times rose 0.03%. Japan 10-year JGB yield dropped -0.0015 at 0.054. |
