The Pound made some strong moves today as GDP data showed a lift of 0.7% q/q for the economy, this was relatively upbeat compared to the previous months 0.4% and the market for the most part looked favourably upon this. Many are now expecting that with the jump in GDP and the risk of a Greek exit dissipating that we may see further talk from the Bank of England (BoE) about lifting interest rates in the near future, something that many have been hoping for some time. Now personally I have been expecting this for some time, but the BoE has warned previously that it is unlikely to start lifting rates before the US so as to avoid a currency shock and a large appreciation in the pound.
So despite the hopes of an interest rate lift, the market was buoyant against the USD and we saw the GBPUSD lift to 1.5609 before slowing down as it touched on heavy resistance. This is quite high territory for the pound at this point, and I would not expect much in the way of higher highs unless we see some solid UK data.
For the US markets... well it was not so good, as CB consumer confidence fell quite short of the expected 100 reading as it touched on 90. Now this will have some alarm bells ringing, but not if you're a S&P trader as it saw a strong rally overnight. This was led in part by the reversal in China, and stock markets shrugging of previous fears. Resistance is looking tight at this stage as well at 2091.89, but I believe that we will see further pushes higher especially as China starts to come right under pressure from the communist party.
The NZDUSD, aka the kiwi, was flying high today as it broke upwards to push in the 0.67 range at present. This will have taken many by surprise, but yesterday I mentioned that the bears looked to have lost steam, and at some point you've got to unwind on the charts. Looking forward it's likely we could see some testing of resistance levels and one I will be paying close attention to is the 0.6877 level which has been very strong previously as it acted as support and resistance.
Lastly it's worth touching on silver which has had some interesting moves lately. After a brief push and touch on major support at 14.356 the market is looking all the more attractive/exciting for once, and there could be some bulls left in this one. Silver for the most part is shunned by the media and traders the majority of the time, but it really does feel like there is a lot more value and volatility for the brave trader. Certainly with the spate of bad data going long may seem more sensible, but at this stage anything is game in the Silver market and a push higher would easily get rejected of resistance at 15.442
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