S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Pound Sterling (GBP) is likely to range-trade, most likely between 1.3470 and 1.3535. In the longer run, GBP could rise to 1.3590; the odds of a continued rise above this level are not high.
GBP might rise to 1.3590
24-HOUR VIEW: “GBP dropped to a low of 1.3415 on Monday and then rebounded sharply. Yesterday, when GBP was at 1.3535 in the early Asian session, we highlighted that ‘there is a chance for the sharp rise in GBP to test 1.3560 before levelling off’. We also highlighted that ‘based on the current momentum, we do not expect 1.3590 to come into view’. GBP then rose to 1.3567 but instead of levelling off, it pulled back to a low of 1.3492. Upward momentum has slowed with the pullback, and today, we expect GBP to range-trade, most likely between 1.3470 and 1.3535.”
1-3 WEEKS VIEW: “We revised our GBP view to positive yesterday (06 Jan, spot at 1.3535), indicating that GBP ‘could rise to 1.3590’. However, we pointed out that ‘the odds of a continued rise above this level are not high’. GBP subsequently rose to 1.3567 before staging a relatively sharp pullback. While upward momentum has slowed somewhat, we will maintain the same view as long as GBP holds above 1.3455 (no change in ‘strong support’ level).”
