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"The Fed hasn't really pushed back against rate hike expectations and we've seen initial jobless claims which were much better than expected today and the dollar can therefore find a bit of an underpinning."
- Rabobank (based on Reuters)
Pair's Outlook
The support at 1.5150, mainly represented by the monthly S3, failed to underpin the Cable amid yesterday's fundamentals and allowed the currency pair to plunge down to 1.5050, namely the weekly PP. Thus the Sterling missed an opportunity to re-test the up-trend at 1.53 in the nearest future and is therefore poised to extend the sell-off. One of the nearest targets is 1.49, followed by one of the major demand areas at 1.48 (2013 low).
Traders' Sentiment
Depreciation of the Pound did not have a noticeable effect on the SWFX sentiment: 57% of open positions are long. At the same time, the difference between the buy (46%) and sell (54%) orders is insignificant, it is less than 10 percentage points.
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