GBP traded lower against USD and closed at 1.2697.
Sterling slips after BoE holds rates but cuts growth forecast
The BoE message was far less dovish than the U.S. Federal Reserve and European Central Bank, which this week opened the door to rate cuts.
Sterling has rallied in recent days, pulling away from five-month lows, as investors dumped the dollar following the Fed’s dovish signaling.
According to the Analysis, pair is expected to find support at 1.26437 and a fall through could take it to the next support level of 1.25904. The pair is expected to find its first resistance at 1.27385, and a rise through could take it to the next resistance level of 1.27800.
AUD traded higher against USD and closed at 0.6919.
Black Rock Inc. is shorting the Australian dollar.
The currency has been out of favor this year as the RBA turned dovish and cut rates for the first time in three years.
The central bank trimmed its cash rate by 25 basis points to 1.25% on June 4, with Governor Philip saying the decision would help reduce unemployment and boost inflation.
According to the Analysis, pair is expected to find support at 0.68858, and a fall through could take it to the next support level of 0.68523. The pair is expected to find its first resistance at 0.69441, and a rise through could take it to the next resistance level of 0.69689.
Key Fundamentals of the Day
FED has a next move, Opportunity to Sell
Fed easing will eventually pull USD lower.
It’s believed that any additional USD firmness over the next 1-2 weeks will set up for a sell opportunity.
Suicide Rates among Young Americans Accelerates To Highest Level Since 2000.
For Detailed analysis visit XtreamForex YouTube Channel.