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Currency
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Last
|
High
|
Low
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Daily Change (pip)
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Daily Range (pip)
|
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NZD/USD
|
0.7309
|
0.7376
|
0.7279
|
12
|
97
|
NZD/USD Daily
Chart – Created Using Trading View
Despite the 1.3% advance in the Global Dairy Trade (GDT) Price Index, NZD/USD snaps back from a fresh 2017 high of 0.7375, with the lack of momentum to test the November high (0.7403) raising the risk for a near-term exhaustion; the string of failed attempts to close above the Fibonacci overlap around 0.7330 (38.2% retracement) to 0.7350 (61.8% expansion) may open up the downside targets especially as the Relative Strength Index (RSI) still responds to the bearish formation carried over from the summer months.
With Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler scheduled to step down in September, the central bank may stick with the status quo throughout 2017 as Grant Spencer will fulfill the role of acting governor from September 27 to March 18; in turn, the kiwi-dollar may carve a longer-term series of lower highs & lows as it largely preserves the downward trending channel from September.
Will keep a close on the monthly opening range, with a break/close below 0.7240 (61.8% retracement) opening up the next downside area of interest around 0.7200 (38.2% retracement) followed 0.7100 (38.2% expansion).
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Currency
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Last
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High
|
Low
|
Daily Change (pip)
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Daily Range (pip)
|
|
GBP/USD
|
1.2435
|
1.2487
|
1.2347
|
34
|
140
|
GBP/USD Daily
Chart – Created Using Trading View
GBP/USD extends the recent series of lower highs & lows while Bank of England (BoE) board member Kristin Forbes highlights a hawkish outlook for monetary and warns the central bank may have to raise the benchmark interest rate ‘even if it means reversing recent adjustments;’ the near-term outlook for GBP/USD remains tilted to the downside following the failed run at the December high (1.2775), but the pound-dollar may continue to track the range carried over from late-2016 as the Monetary Policy Committee (MPC) appears to be on course to move away from its easing-cycle.
With BoE Governor Mark Carney scheduled to speak on Thursday, another batch of hawkish rhetoric may limit the downside risk for sterling as the central bank persistently warns ‘there are limits to the extent that above-target inflation can be tolerated,’ but the British Pound remains at risk of facing headwinds throughout 2017 as the U.K.’s departure from the European Union (EU) clouds the economic outlook.
A close below.
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