The data highlighted to the market again the possibility of taking more easing steps by the Fed weighing down on the greenback across the broad after US Michigan consumers sentiment index preliminary reading of July came down to 72 last Friday while it was expected to rise to 73.4 from 73.2 in June showing the need for spurring demand after the recent Fed's decision of extending its treasuries twist operations by 267$ keeping its same buying monthly scale at $44.4b till the end of this year by God's will.
God willing, the market will be waiting today for the release of June UK CPI which is expected to decline monthly by 0.1% as it has done in May with the same rate of rising yearly in May by just 2.8% which has been the lowest rising rate since November 2010 to ensure BOE expectation of easing of the inflation up side risks which paved the way to it to add another Stg50b to its assets purchasing program on the 5th of this month to rise to Stg375b.
Now after the British pound could form a base recently at 1.5391 versus the greenback to rise to the current level, it can face now by God's will a new resistance at 1.5722 before 1.5777 which was the highest level it has reached following falling to 1.5266 on the first day of last June while easing back again can be met now by a supporting level at 1.5516 which could hold yesterday and in the case of breaking it, there can be a possibility again for facing 1.5412 before meeting 1.5391.
FX Market Strategist
Walid Salah El Din