 Sterling rebounds strongly after two BoE MPC member voted for tapering. Also, recent developments strengthened the case of modest tightening. Commodity currencies are also firmer following mild rebound in the stock markets. On the other hand, Yen, Swiss Franc and Dollar turned softer on improvement overall risk sentiment. But for now, the Pound is still the worst performing for the week while Swiss Franc is the strongest. Technically, GBP/USD's break of 1.3691 minor resistance suggests that fall from 1.3912 has completed, and stronger rise could be seen to retest this resistance. Similarly, GBP/JPY's break of 150.80 minor resistance suggests that stronger rise would be seen to 152.82 resistance. Focus will be on whether EUR/GBP would break through 0.8499 to target a test on 0.8448 low. Overall, there is prospect of a turnaround in Sterling. In Europe, at the time of writing, FTSE is down -0.09%. DAX is up 0.70%. CAC is up 0.74%. Germany 10-year yield is up 0.0432 at -0.279. Earlier in Asia, Japan was on holiday. Hong Kong HSI rose 1.19%. China Shanghai SSE rose 0.38%. Singapore Strait Times rose 0.93%. |
