Dollar gains trimmed by Wall Street selloff
The pair keeps the negative tone on Wednesday around the mid-1.1200s ahead of the ADP Employment Report due in the US economy later. Market consensus expects the US private sector to have created 201K during August vs. 185K seen in the previous month.
In the meantime, spot keeps the consolidative pattern around current levels, recovering from last week’s lows in the mid-1.1100s, looking to a major catalyst in order to break the pattern either way (ECB? Payrolls?). .
GBP/USD hovers near daily lows ahead of US ADP report
The spot is hovering a few pips away from the daily low of 1.5264. Sterling came under pressure after having suffered a bearish daily close below 1.5330 (July 8 low) on Tuesday. The slightly upbeat UK construction PMI released earlier today failed to put a floor under the cable.
Sterling could suffer loss for the seventh consecutive day if the ADP report shows the private sector added more than the expected 200K jobs in August. Furthermore, the sentiment on the could also play a major role in deciding the trend ahead. At the moment, the major equity index futures in the US are trading moderately higher. .
Pound falls to 2-week lows vs. stronger dollar
The pound fell to two-week lows against the U.S. dollar on Tuesday, as expectations for a U.S. rate hike in the coming months continued to lend broad support to the greenback.
GBP/USD hit 1.5385 during European morning trade, the pair’s lowest since May 8; the pair subsequently consolidated at 1.5415, sliding 0.36%. Cable was likely to find support at 1.5241, the low of May 8 and resistance at 1.5591, the high of May 20. The dollar was boosted after Federal Reserve Chair Janet Yellen reiterated Friday that the bank still expects to start raising interest rates later in the year if the economy continues to improve as expected.
Important events and their explanation:
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Explanation:- As we are heading towards the final day of the week and closer to the crucial event of the year ie Fed meeting. Above data would remain the status quo but better then expected data might be positive for the USD and negative for the bullions.
| Quick Glance : |
| Instrument | Price | %Chg | Volume | OI |
| USD/INR | 66.46 | 0.17 | 788526 | 960103 |
| EUR/INR | 74.42 | -0.82 | 37048 | 48836 |
| GBP/INR | 102.25 | 0.07 | 21059 | 41217 |
| JPY/INR | 54.88 | -0.64 | 7908 | 15311 |
| Instrument | Price | %Chg | Volume | OI |
| USD/INR | 66.46 | 0.17 | 788526 | 960103 |
| EUR/INR | 74.42 | -0.82 | 37048 | 48836 |
| GBP/INR | 102.25 | 0.07 | 21059 | 41217 |
| JPY/INR | 54.88 | -0.64 | 7908 | 15311 |
Technical Touch
Pair formed a dragon fly doji in a daily chart and assume pair might fall till 66.32 and one can initiate buy till 66.55-66.70 levels.