Talking Points:
- The British Pound[1] is bouncing after a hawkish twist at this morning’s BoE rate decision, and GBP/USD[2] is rallying after running into a key Fibonacci level earlier this morning at 1.3117. The MPC voted 6-3 to hold rates flat, but the fact that there were three dissenting votes cast in favor of a rate hike today was a bit more hawkish than what was expected. In response, odds for a rate hike at the BoE’s August rate decision have increased, and spot prices in the British Pound have moved along with it. The big question at this point is one of continuation potential, and for that traders will likely be closely evaluating data in the coming weeks in the effort of evaluating the likelihood of a potential move. Inflation data will likely be key, and May produced a second consecutive month at a yearly low of 2.4%. We have one more inflation report ahead of that August BoE rate decision.
- The US Dollar[3] is pulling back after setting another fresh 11-month high earlier today. This was helped in part by another wave of selling in the Euro[4], but just like we saw in late-May, sellers got shy as we approached the 1.1500 handle and prices began to pullback from the swing-low around 1.1510. This opens up a couple of different ways of approaching the short-side of the pair, looking for either a bearish breakout below the 1.1500 psychological level or by trying to be patient to await a pullback to the resistance zone that runs from 1.1685-1.1736.
- DailyFX Forecasts on a variety of currencies such as the US Dollar[5] or
