UK CONSTRUCTION data came in weaker than expected on Tuesday and the recent sterling-euro strength was reversed. Considering that the bulk of the GDP number was heavily dependent on construction figures, analysts fear that the next release of GDP data may come in weaker. If this is the case sterling-euro could face further weakness. Capital CFDs quotes €1.1430-€1.1433.
After recently recommending a sell of US dollar-Canadian dollar at Ca$1.0350, the pair slid to Ca$1.0087 and seems to be destined for parity again. Traders could look to hold shorts until Ca$1.0010 and then reversing to a long position with a view to first retaking the Ca$1.0200 level and then back to Ca$1.0350. Spread Co offers a spread on US dollar-Canadian dollar of Ca$1.0084-Ca$1.0088.
Australian dollar-US dollar continues to find support after the surprise move by the Reserve Bank of Australia earlier in the week. Although this isn’t the first time the pair has been past parity, the key is now the sustainability of the move. The US Federal Reserve has been expected to announce more QE for some time and so it has already been priced in by the market. Therefore, any delay or shortfall in the plan could see the Aussie unwinding from these record highs. IG Index offers $1.0007-$1.0009.
Dollar-yen appears to be trying to form another bottom in the ¥80.50 area and it almost met the wall of sell orders from Japanese exporters at ¥81 as it rallied strongly yesterday. The Bank of Japan has moved a meeting forward to this Thursday and Friday, so it will be one to watch closely to see its reaction to the Federal Open Markets Committee meeting. Spread Co is offering a spread on dollar-yen of ¥80.79-¥80.72.
The pound has been flirting around the $1.6000 level which has not been seen since February. It has been forming an upward channel since September, but can this continue if the Fed hits the printing presses. Spreadex offers a spot price of $1.6024-$1.6027 on sterling-dollar.