Yesterday GBPUSD gladden volatility buyers by making a sharp downswing from the upper border of the range down to the secondary option barrier located at 1.6074 mainly due to the publication of the MPC Meeting Minutes. Only 2 out of 10 MPC members supported an interest rate increase. Probably, big-scale market players had another point of view on the matter, which instantly affected GBPUSD.
The negative sentiments were supported by the eurozone’s industrial new orders (the actual value turned out to be 0.4% lower than expected).
In general the overheated volatility of GBPUSD was supported by the fact that yesterday the Greek government discussed the ways to consolidate the budget within the next 5 years. This is one of the 2 requirements the Greek authorities must comply with in order to get another loan for the EU.
Today we expect a lot of significant macroeconomic data to be published. Today’s major drivers will be: the U.S. unemployment news block, new home sales (USA), the UK’s retail sales and the eurozone’s business activity news block. Jean-Claude Trichet and Adam Posen’s speeches are also worth paying attention to.
The option barriers 1.6232 and 1.5911 remain to be significant levels of support and resistance.
Provided by the Department of Options,
