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"FOMC members are a little bit challenged by the fear that they don't want to rattle markets. It makes sense for them to proceed with caution."
- Deutsche Bank (based on Bloomberg)
Pair's Outlook
After a dive beneath the weekly PP at 1.5697, even the cluster of SMAs did not help to hold the pair near the 1.57 mark. Now the pair is fluctuating close to this year's low that was reached at the very beginning of December at 1.5585. We think that the likelihood of the currency couple approaching this year's low has increased since yesterday and it the bearish technicals only strengthen the possibility of this scenario.
Traders' Sentiment
Although there are relatively less people than yesterday considering that the British Pound is going to appreciate versus the US Dollar, they are still in majority (57%). In the meantime, the share of sell orders rose from 67% to 68%.
© Dukascopy Bank SA