{"id":60250,"date":"2014-09-12T04:48:29","date_gmt":"2014-09-12T08:48:29","guid":{"rendered":"http:\/\/countingpips.com\/?p=60250"},"modified":"2014-09-12T06:57:29","modified_gmt":"2014-09-12T10:57:29","slug":"daily-report-cable-spikes-as-support-for-scottish-independence-wavers","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/daily-report-cable-spikes-as-support-for-scottish-independence-wavers\/","title":{"rendered":"Daily Report: Cable spikes as support for Scottish Independence wavers"},"content":{"rendered":"
September 12, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

The Cable spiked during Thursday\u2019s trading from a daily low 1.6185 to as high as 1.6269, following the latest YouGov poll revealing that \u201cNO\u201d votes had gained dominance one week away from the Scottish referendum. The GBPUSD pair concluded trading yesterday at 1.6253.<\/p>\n

Cable strength was also supported by Bank of England (BoE) Governor Carney\u2019s perfectly timed comments that an interest rate hike from the BoE is likely around Spring 2015, an announcement that prevented the Cable from extending below 1.6050 on Tuesday. A combination of the BoE indicating a timeframe for a potential interest rate hike, alongside \u201cNO\u201d votes gaining dominance ahead of the upcoming Scottish referendum have encouraged the Cable to recover 200 of the sudden 600 pip losses encountered since last Tuesday.<\/p>\n

The latest UK Construction Output data for July is released today but with the Scotland referendum happening next Thursday, this news is likely to have a muted response. Any indications of the \u201cYES\u201d party regrouping and potentially picking up momentum over the weekend would likely prevent the GBPUSD from moving towards 1.63. Possible support levels for the pair can be found located at 1.6230 and 1.6209.<\/p>\n

Elsewhere, the EURUSD traded narrowly on Thursday with Mario Draghi\u2019s speech in Milan failing to inspire the volatility that investors were hoping for. The pair concluded trading at 1.2924, only 10 pips above Thursday\u2019s opening price. Economic indicators from the EU are low in quantity today, with the pair seemingly more likely to fluctuate in accordance to how the markets react to the US Advance Retail Sales and University of Michigan Confidence data.<\/p>\n

The current forecast for Advance Retail Sales is 0.6% and although the Federal Reserve appear to be currently focusing strictly on the labor markets when discussing monetary policy, consumer expenditure still relates to around 70% of the US economy and so this is an important indicator of economic health. Following the impressive news a fortnight ago that the US Manufacturing sector was expanding at a pace not seen since March 2011, investors will be looking for more signs of economic momentum for Q3.<\/p>

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In line with what was forecast, the USDJPY fell just short of progressing fully above the 107.380 resistance level on the weekly timeframe. The pair moved as high as 107.391 before falling as low as 106.961. An overnight speech from Bank of Japan Governor Kuroda indicated that although they are prepared to act if the economy needs assistance, there are no plans to add stimulus at present.<\/p>\n

These hints from Kuroda seemed to have prevented investors from pricing in JPY weakness for the time being. As long as this afternoon\u2019s US Advance Retail Sales doesn\u2019t raise expectations that the Fed will raise rates sooner than expected, the pair\u2019s buying pressure should cool down.<\/p>\n

The combination of the US Federal Reserve tapering quantitative easing (QE) further next Wednesday and announcing a conclusion to QE in October, as well as rising expectations of future JPY stimulus should provide enough momentum for this upside rally to resume later next week.<\/p>\n

Written by Jameel Ahmad, Chief Market Analyst at FXTM.<\/b><\/p>\n

For more information please visit: Forex Time<\/a>\u00a0<\/b><\/p>\n

Disclaimer:<\/b> The content in this article comprises personal opinions and ideas and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime Ltd, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/p>\n

Risk Warning:<\/b> There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.<\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

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Article by ForexTime The Cable spiked during Thursday\u2019s trading from a daily low 1.6185 to as high as 1.6269, following the latest YouGov poll revealing that \u201cNO\u201d votes had gained dominance one week away from the Scottish referendum. The GBPUSD pair concluded trading yesterday at 1.6253. Cable strength was also supported by Bank of England […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60250","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=60250"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60250\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}