26 Aug 2015
GBP/USD attacks 1.5600 ahead of US data
FXStreet (Mumbai) - The British currency keeps falling versus the US dollar in the mid-European trades, with GBP/USD hovering just ahead of 1.5600 levels, as the USD bulls tightened their grip reacting to the latest PBOC-SLO news which spurred renewed optimism in the investors’ minds.
GBP/USD drops further from 1.5650
The GBP/USD pair trades -0.50% lower at fresh session lows of 1.5610, heading towards 1.5600 levels. The cable continues to lose momentum as the buck enjoys the improving risk sentiment boosted by the recent series of measures unveiled by PBOC’s in a bid to spur the economic growth and stabilize financial markets.
The People's Bank of China (PBOC) decided to ease the slowing economy further, with an injection of 140 billion yuan ($21.80 billion) into the financial system one day after policymakers cut the benchmark interest rates. On Tuesday, the central bank reduced the one-year lending rate to 4.6%, and the one-year deposit rate to 1.75%, while it also cut the Reserve Requirement Ratio (RRR) by 0.5%.
Meanwhile, the prices are likely to track USD moves in the day ahead as the recently released UK retail sales from CBI had little influence on the cable. While New York Fed President William Dudley speech on local and regional economies will also be closely watched.
Durable goods orders are forecast to fall 0.4% in July, a steep worsening from the 3.4% rise booked a month before. Excluding transport, durables are seen rising 0.4%, a slowdown from the June 0.8% growth.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5604 (Aug 20 Low) below which it could extend losses to 1.5560 (Aug 18 Low) levels.
GBP/USD drops further from 1.5650
The GBP/USD pair trades -0.50% lower at fresh session lows of 1.5610, heading towards 1.5600 levels. The cable continues to lose momentum as the buck enjoys the improving risk sentiment boosted by the recent series of measures unveiled by PBOC’s in a bid to spur the economic growth and stabilize financial markets.
The People's Bank of China (PBOC) decided to ease the slowing economy further, with an injection of 140 billion yuan ($21.80 billion) into the financial system one day after policymakers cut the benchmark interest rates. On Tuesday, the central bank reduced the one-year lending rate to 4.6%, and the one-year deposit rate to 1.75%, while it also cut the Reserve Requirement Ratio (RRR) by 0.5%.
Meanwhile, the prices are likely to track USD moves in the day ahead as the recently released UK retail sales from CBI had little influence on the cable. While New York Fed President William Dudley speech on local and regional economies will also be closely watched.
Durable goods orders are forecast to fall 0.4% in July, a steep worsening from the 3.4% rise booked a month before. Excluding transport, durables are seen rising 0.4%, a slowdown from the June 0.8% growth.
GBP/USD Levels to consider
The pair has an immediate resistance at 1.5778 (June 30 High) above which gains could be extended to 1.5800 levels. On the flip side, support is seen at 1.5604 (Aug 20 Low) below which it could extend losses to 1.5560 (Aug 18 Low) levels.