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The US consumer confidence could drive the cable lower

Discussion in 'Current Market Sentiments' started by fx-recommends, Dec 30, 2015.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    The rising of US consumer confidence could bolster demand for the Greenback and the US equities sending S&P 500 up 21.78 to close at 2078.36 which has not been seen since Dec. 9.

    Nov US consumer confidence rose to 96.5, while the median forecast was referring to 93.8, after 90.6 in November.

    US S&P/Case-Shiller Home Price Indices could keep rising by 5.5% y/y in October as what has happened in September which is the highest yearly rate of rising since rate since August 2014.

    While Nov US Goods Trade Balance deficit rose to $60.50b which is the highest deficit since last August, after $58.41b in October.

    This figure has started to be represented in Jun 2015 to provide advanced statistics 4-7 days before the International Trade Balance.

    There was also another auction of UST 5YR issuance ended on yield rising to 1.785% from 1.6470% on last Nov. 24 Auction to highlight the rising of the interest rate outlook in US which has happened, after last FOMC meeting when the Fed decided to raise its funds rate by 0.25% initially expecting reaching 1.375% at the end of 2016.

    GBPUSD came under more pressure to break its previous supporting level at 1.4803 which could stop its slide from a formed lower high at 1.5238 to help the cable to rebound to 1.4948, before coming again under pressure to extend the falling yesterday to 1.4783, before rebounding to reside for trading currently near 1.4830.

    The cable daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility has peaked out below its overbought area above 80 by forming lower high at 1.4948 and now, its main line is in the neutral area referring to 33.406 leading to the downside its signal line which is reading now 55.187.

    The cable daily Parabolic SAR (step 0.02, maximum 0.2) is still above its trading rate for the eleventh consecutive day reading now 1.5062 reflecting the down side pressure on the cable.

    Important levels: Daily MA50 @ 1.5122, Daily MA100 @ 1.5257 and Daily MA200 @ 1.5323


    S1: 1.4783
    S2: 1.4698
    S3: 1.4564
    R1: 1.4948
    R2: 1.5007
    R3: 1.5095

    Have a good day

    Walid Salah El din
    Senior Market Analyst
    Skype : chief.economist.walid

    Tel: UK. +44 1138590277
    Mob: EGY. +20 1224659143

    Archive: http://www.trade-24.com/daily-analysis

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