‘We do not believe the USD will weaken through key technical and psychological levels in the coming month.’ – HSBC (based on PoundSterlingLive)
Pair’s Outlook
Even though the ADP data surprised to the upside yesterday, the FOMC Minutes weighed on the US Dollar, allowing the Pound to erase most of Tuesday’s losses. Another positive development is expected today, with the Cable reclaiming the 1.25 major level. However, there are doubts the exchange rate will be able to stabilise above the 1.2516 mark, namely the weekly PP, as there are no solid market drivers present today. On the other hand, the Buck has a tendency of strengthening the day ahead of the NFP data; therefore, a slide back towards the support cluster circa 1.2425 is not out of the question.
Traders’ Sentiment
Traders’ sentiment remains bullish, now with 58% of all open positions being long (previously 57%). At the same time, the share of purchase orders inched up from 51 to 55%.
