Edward Culchenko
During yesterday’s trading session GBPUSD favored volatility buyers. The level of volatility reached the top at the beginning of the trading session, with the British Pound losing over 100 pts against the US Dollar. It happened mostly due to the unfavorable data of the UK’s Consumer Confidence Index (-4 points as compared with the previous value). The Bank of England’s report on the country’s credit market also disappointed major players. The eurozone’s data, on the contrary, came out positive.
As for the USA, its macroeconomic data came out slightly positive. The initial jobless claims were higher than expected but lower than a week before. Chicago PMI added some positiveness: it came out higher than expected and exceeded the previous value.
Obviously, Greece remains the main factor keeping the volatility level of GBPUSD close to the top. Yesterday the Socialist Party headed by George Papandreou put to the vote different austerity measures. The voting lasted over 10 hours. It should be taken into account that in late 2011 Greece may face off-year elections, which may question the implementation of the approved anti-crisis measures.
Today’s news background is going to be fairly rich in significant news. The level of volatility will be determined by the eurozone’s PMI Manufacturing and Unemployment Rate, the UK’s PMI CIPS and the USA’s ISM Manufacturing and Michigan University Consumer Sentiment Index.
At the moment the currency pair is staying between 1.6074 and 1.5999 – the current levels of support and resistance.
Provided by the Department of Options,
Edward Culchenko
