TRADING
TIPS :
The GBP/USD spot ran into fresh bids
after it recovered above key level at 1.5467 (July 24 low) from the
session low of 1.5460. Sterling is trading relatively resilient
against the USD as we head into the US session. Rising rate hike bets
in the US pushed the spot to a low of 1.5460 earlier today, although
the pair has managed to move back towards 1.55 levels. The US
Treasury yield curve has steepened – long duration yields
relatively strong compared to short-duration yields. Moreover, rising
rate hike bets are well expressed through a flattened yield curve.
Consequently, the USD has pared gains on a steep yield curve. Ahead
in the US session, the focus is likely to be on Fed’s Lockhart
speech and the resulting action in the 2-yr Treasury yield.
RECOMMENDATION:
BUY
GBP/USD ABOVE 1.5590 TARGET 1.5610 1.5640 SL 1.5560
SELL
GBP/USD BELOW 1.5540 TARGET 1.5520 1.5490 SL 1.5570
RECOMMENDATION:
BUY EUR/USD ABOVE
1.0990 TARGET 1.1010 1.1030 SL 1.0960
SELL EUR/USD BELOW
1.0960 TARGET 1.0940 1.0910 SL 1.0990
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