Yuriy Ukazkin
Yesterday’s trading session gladdened volatility buyers as the volatility hit the top (the highest level since 2009). At the same time GBPUSD tested the borders of the 1.6232 - 1.6327 range. There were almost no economic reports. However, many major market participants were shocked and confused by S&P’s unprecedented decision to deprive the USA of its AAA rating by cutting it down to AA+.
In order to prevent financial market panic Timothy Geithner, Secretary of the US Treasury, held a press conference, saying that the authorities will do their best to avoid another global financial crisis. The leaders of the world’s biggest economies supported him and promised to work out a mechanism for stabilizing the situation.
Today the Federal Reserve and other major central banks are going to hold emergency meetings (to find efficient ways to restore the global economy). But today’s news background is poor. However, it is still worth paying attention to the UK’s retail sales, trade balance and production volume and the Fed Reserve’s interest rate decision.
The most significant levels of support/ resistance are 1.6232 and 1.6327. It is still not recommended to purchase the volatility of GBPUSD.
Provided by the Department of Options,
Yuriy Ukazkin
