The Great British Pound was forced lower through trade on Wednesday as investors continued to support the USD on expectations the Federal Reserve will raise rates before years end. A flat domestic calendar offered little support and Cable broke below 1.54 for the first time since the May 7 elections. Comments from her Majesty the Queen hinting at changes in legislation to bring forward the in/out European Union Referendum were largely ignored and has little impact on Sterling fortunes. Attentions now turn to GDP estimates and quarterly Business investment reports for direction through Thursday.
The U.S Dollar advance continued throughout trade on Wednesday as the world’s base currency strengthened against most major counterparts breaking above 124.00 and making fresh 8 year highs against the Japanese Yen. Investors continue to pile support behind the Greenback as improved data sets and comments from key central bankers suggest the recovery from a listless first quarter has begun, heightening expectations surrounding the timing of a Federal Reserve rate adjustment. The Dollar found additional support in automatic sell orders as USD/JPY stop losses triggered forcing the Yen lower still. The Euro was perhaps one of the few counterparties to offer resistance to the Greenbacks upward push bouncing off 1 month lows on rumours Greece and her creditors were in the midst of drafting an agreement that would unlock funding for the cash strapped nation. Having touched intraday lows of 1.0815 the 19 nation combined currency rallied to touch 1.0929 before easing lower. Despite the a swift rebuff from European officials denying claims a debt deal had been reached traders willingness to buy the rumour rather than sell the fact helped cement the daily gain. Attentions now turn to Unemployment Claims and Pending Home Sales data ahead of key preliminary GDP numbers Friday as investors seek stronger data to support the Bullish trend.