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Pound Trying to Get Back Losses

The Brexit is still keeping market participants in a tense state. Some are running for the safe assets due to worries in regards to the consequences of the UK leaving the EU. During the Asian session the pound/dollar fell to 1.2791 where it received support from a lot of buys.

Over the course of nine hours the rate recovered 184 points to 1.2975. Other currencies strengthened against the dollar together with the pound. It’s worth noting that, during trades in Europe, the Japanese yen and gold both rose. This means the dollar is weakening throughout the market.

It seems to me that traders are fixing profit for long positions before the US Fed minutes and data from ADP (Automatic Data Processing) on private sector employment. Due to Independence Day, the ADP report is out on Thursday. It’s expected that 151k jobs were created in the US private sector throughout June.

The main event of the day is the Fed minutes being released. Before they come out, the ISM business activity index in the service sector will be out, in addition to May data for external trade. At 23:55 EET, the American institute for oil is publishing its oil reserve report.

The euro/dollar is sticking so far to my morning’s forecast and closing the daily candle around 1.1053. The pound has bounced sharply from 1.2791. After such rebounds pairs often head sideways, just as happened for this pair on 30th June after a ricochet from 1.3205.

07 July, 07:48 (GMT+3)
Euro Returned to 1.11

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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