Cable just pulled back from its weekly highs!
Are we looking at a retracement opportunity in the making?
Before moving on, ICYMI, yesterday’s watchlist checked out NZD/USD’s uptrend ahead of RBNZ’s policy decision. Be sure to check out if it’s still a good play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. Conference Board consumer confidence index for November: 102.0 (101.0 expected, 99.1 previous)
Fed Governor Waller, a well-known policy hawk, said on Tuesday that interest rates may not need to rise again; Governor Bowman remains open to further hikes if needed
The RBNZ kept its interest rates unchanged at 5.50% as expected; RBNZ noted that rates “need to be restrictive” and that “OCR would likely need to increase”
Price Action News
Overlay of NZD vs. Major Currencies Chart by TradingView
The RBNZ’s surprisingly “hawkish hold” in the early Asian session propelled NZD higher against its major counterparts.
NZD steadied in the hours after the RBNZ’s event before eventually retracing some of its gains by the London session open.
The New Zealand dollar is still in the green across the board. It’s currently trading the strongest against AUD and JPY and is weakest against USD and CHF.
Upcoming Potential Catalysts on the Economic Calendar:
Canada’s current account balance at 1:30 pm GMT
U.S. preliminary GDP reading at 1:30 pm GMT
BOE Gov. Bailey to give a speech at 3:05 pm GMT
U.S. Beige book report at 7:00 pm GMT
New Zealand’s building consents at 9:45 pm GMT
Japan’s industrial production at 11:50 pm GMT
Japan’s retail sales at 11:50 pm GMT
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
GBP/USD 15-min Forex Chart by TradingView
I don’t know if you’ve noticed but GBP/USD has been giving us higher highs and higher lows all month.
This week, the pair climbed all the way to the R1 (1.2740) Pivot Point line before encountering resistance. The pair has turned lower since, and is now trading closer to the 1.2675 Pivot Point line in the 15-minute time frame.
Are we looking at an opportunity to jump in GBP/USD’s uptrend?
Today’s U.S. preliminary GDP release and BOE Gov. Bailey’s scheduled speech could shake things up for the pair.
U.S. data releases that point to a soft landing could extend the pro-risk, anti-USD theme that we’ve been seeing for the most part of the month. Ditto for any hawkish statement from Bailey, which could push GBP higher against its counterparts including USD.
GBP/USD may draw in buyers from its current levels. It may even see enough support to revisit its 1.2730 highs if there’s enough bullish momentum.
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