As it was expected, the eurozone and UK’s PMIs caused volatility spikes. The eurozone’s index lost 0,5pts. The British index, on the contrary, gained 0,3pts against the forecast. Against this background the British Pound gained more than 120 pts versus the US Dollar, leaving the secondary option level of support (1.5999) far below.
GBPUSD was further restrained by the eurozone’s retail sales, which came out much worse than expected.
Moreover, the U.S. congressmen made an interesting statement yesterday. They are now considering tax cuts for companies with foreign investments in order to stimulate the creation of new jobs and to attract new foreign investors.
Today we are not going to witness any major new releases. That is why it is not recommended to purchase volatility today. 1.6232 and 1.5911 remain to be the closest levels of support and resistance.
Provided by the Department of Options,
