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Ahead of the 06:00 CBI Realized Sales out of the U.K. there are bullish moves from Gbp/Usd towards the 1.6620 area, and that looks to be a massive technical resistance point. Global equity futures are holding in the green, but the market is still seeing more of the risk play in the major pair's link to oil moves than stocks this week.
It seems as though the market wants to sell dollars at the moment, but also wants to do it on the back of stronger equity trade, and as that is not happening, it seems that the forex/oil link will play out; Long oil trade will equate to a weaker Usd.
Wednesday is a very important economic day, and as such traders may witness some intra-day volatility as trade desks get themslves aligned with their percieved fair value on the Usd, TheLFB Trade Team members said.
As we mentioned earlier, the markets have wound themselves to the highs of the session against the dollar, but instigating the next break may be harder than it looks, because of the power-packed economic calendar. However weak the dollar looks it may not be that things can break too far ahead of the calendar releases, they added.