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"Macro funds betting on a September Fed rate hike have increased their long exposure to the dollar, which was the main driving force behind the rise this week."
- Nomura Securities (based on CNBC)
Pair's Outlook
The Cable keeps falling for the second week in a row, as the Sterling declined again versus the Greenback yesterday. The pair attempted to edge higher, but the 200-day SMA pushed it all the way down to 1.53 psychological level. However, the weekly S1 managed to provide some support, as the Pound settled at 1.5350. A rebound is likely to take place today, with the Cable closing trade around 1.5450. Nevertheless, we should not rule out the possibility of a slump down to 1.52 if the fundamental data disappoints, while technical studies retain mixed signals.
Traders' Sentiment
Bulls returned to last Friday's level of 45%, whereas the number of buy orders increased from 53 to 56%.
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