Today promises to be interesting, given the demand for the US dollar and yesterday's strong data on retail sales.
Today the long-awaited Fed’s meeting will be held. It has caused us a lot of guesswork and emotion. We know that the labor market didn’t please in May, the consumer confidence declined, but the retail sales have grown.
The recent comments by Janet Yellen convinced the investors that FOMC is not ready for aggressive action, but the question remains - when will we see the next rate hike? To date, investors believe that, most likely, it will happen in December.
Now the moving of the pair GBP/USD is sharp and chaotic. This movement is caused by the uncertainty of Brexit.
Today the UK will present data on average earnings and claimant count change. The US is to publish data on PPI and industrial production. We expect a decline in the 1.40 area.
How to trade
The short-term downward movement is possible in the range of 1.4093 - 1.4018, the break of this range would open the way to 1.3914. The upward movement is possible in the range of 1.4182 - 1.4256. We would buy put options if the pair falls below 1.4093. We would buy call options if the pair rises above 1.4182.
Expiry time: 20:00 GMT