Interest rate expectations were already elevated for the British pound

GBP/USD

Range: 1.6200 – 1.6252

Support: 1.6145

Resistance: 1.6280

Interest rate expectations were already elevated for the British pound – and we have seen the influence these hawkish projections have afforded to the currency. In the statement, the most remarkable development was a third hawkish dissenter to join MPC members Andrew Sentance and Martin Weale’s repeat call for a firming of the overnight rate. Spencer Dale, until now, fell into the majority keeping a cautious outlook on inflation pressures while deeming them transient enough to keep to the wait-and-see approach. That changed with Dale’s vote for a 25 bps hike that further offset Adam Posen’s call for an additional 50 billion sterling of bond purchases.

USD/CAD

Range: 0.9866 – 0.9900

Support: 0.9870

Resistance: 0.9966

Canadian Dollar Quickly Recovers Ground as Oil Hits a 28-Month High of $100
With the slide in European shares carrying over to selling pressure into the US session yesterday, the weight on risk trends in the FX market was increasing. The drive certainly translated over to USDCAD which climbed as far as 0.9960. However, the plunge seemed to stall in the second half of the New York session; and to take its place, US oil stepped into with a surge to a two-year high to the psychological $100 level.

USD/CHF

Range: 0.9276 – 0.9334

Support: 0.9297

Resistance: 0.9434

Swiss Franc a Different Safe Haven than Yen or Dollar
When we mention safe haven currency, it is reference to a broad category – essentially a currency that appreciates as riskier assets fall. However, there are nuances between them. The yen is largely an anti-carry while the dollar is valued when liquidity in global financial markets is troubled. In contrast, the franc is the closest thing to a safe haven as that term would denote; and that is a factor that could drive EURCHF lower.

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