Today’s news background is going to be quite rich in important news releases. Germany is expected to publish its Unemployment Rate and Change as well as Retail Sales. Italy and France are going to publish their PPI and Retail Prices reports. The US is to release its Initial Jobless Claims and PMI reports. These news events cannot but make the volatility buyers happy.
In its turn GBPUSD is still being traded within a range. The strongest levels of support/resistance are 1.6232 are 1.5911 correspondingly.
Most portfolio managers prefer to wait for the ECB meeting and President Trichet’s interest rate decision. Others are waiting for the US employment/unemployment releases, including Non-Farm Payrolls. All this waiting makes the market stay flat.
Of course, today and tomorrow’s news blocks cannot but cause volatility spikes. The currency pair will most likely break out of the price range, especially as the first part of the week wasn’t so rich in significant market achievements.
Volatility can be bought from now on. If there are any unprofitable positions left, it is recommended to close them on Friday after all the major news releases have come out.(MrFX)