It was a meaningful week for Sterling as BoE showed sign of hiking as soon as in Nov. Sterling rose hundred pips against its trading peers after the announcement. The bull will continue in coming weeks as the tone of the BoE statement was apparently hawkish and BoE Governor Carney confirmed the need to reduce stimulus. As such, we expect further gains in GBP against US dollar and with even stronger gains for GBP versus AUD and NZ. Thus we’re targeting both pairs to reach level 1.7150 and 1.8850 respectively in coming days.
Besides, GBPJPY is an interesting pair to trade recently as finally it broke both weekly and monthly resistance level at 148.25-148.45 and reached as high as 151.54 before settled down at. 150.60 The bull is expected to take control on this pair which is expected to touch Target 1 152.70, Target 2 156.20 or even 157.30 level in coming weeks.
FOMC is scheduled to be held on Wed and with the impact from Hurricane Harvey and Irma which undeniably set the US economy back that may refrain Fed from taking further action during this meeting. If Fed Chair Janet Yellen failed to deliver any clues on Dec hiking, USDJPY may lose its steam back to 110. Retails sales and CPI data for Canada will be released this Fri which may create selling opportunity on USDCAD if both figures far exceeded forecast values.
This week key economic events:
