Helena Izotova
Yesterday GBPUSD failed to come out of the price range created by the option levels at 1.6565 and 1.6750. Next week these levels are expected to turn into a horizontal channel. The currency pair may stay within the channel until some major new releases.
Yesterday’s news on the US labor market and Euro-zone didn’t cause any volatility upsurge. On the contrary, by the end of the week the volatility of GBPUSD declined down to the minimal level.
Today’s news background will be of medium intensity. On the one hand, the day is rich in news releases. But on the other hand almost all of them are insignificant and with evident results. Among the significant news events there are the Euro-zone’s CPI and Unemployment Rate. As for the US, the Fed Res Chairman Ben Bernanke’s speech will be the only one that can influence the market.
In any case, a considerable value gap between the forecast and the actual data will probably cause uncertainty and volatility spikes. If it happens the currency pair will probably try to break the upper border of the range 1.6750. If not, it will try to get back to 1.6565.
Provided by the Department of Options,
Helena Izotova
