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"The dollar is weaker because the statement is largely dovish. Yellen and the Fed in general are waiting for inflation to show its head, and they don't believe it's there yet."
- Chapdelaine Foreign Exchange (based on CNBC)
Pair's Outlook
The Sterling skyrocketed against US Dollar yesterday, easily piercing through the immediate resistance. Moreover, Cable reached a six-month high, as it stabilised at 1.5850, just over weekly R2. However, a correction after a sharp rally is expected to occur on Thursday, forcing the Pound to retreat to the 1.58 psychological level, which is also bolstered by the Bollinger band. Meanwhile, technical indicators retain mixed signals, unable to confirm the scenario.
Traders' Sentiment
Market sentiment keeps worsening, as 53% of traders hold long positions today (previously 54%). The share of orders to acquire the British Pound, on the other hand, gained six percentage points. The commands now take up 59% of the market.
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