Alejandro Zambrano, Chief Market Analyst, Londinium FX, joined us in the Tip TV Finance Show to offer the outlook on key forex pairs - EUR/GBP, GBP/USD and NZD/USD, joined by Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Key Quotes:
“Next two weeks are going to be interesting as we get lot of survey indicators. I remain in favor of selling the pound as data is going to be bad”
“Hard data is going to take few months, but we have PMI indices – manufacturing, services, and construction which are going to be defining the future for the pound in August”
“EUR/GBP - Won’t be surprise if it goes back to latest highs”
“GBP/USD – Could go down to 1.25 in the next three months. Right now could go to 1.35-1.38 but we would turn lower from there”
“GBP/USD – bond market traders are not buying into the latest rebound in Pound. And currency traders are likely to be wrong. Strong support at 1.31, a break lower could open up 1.28-1.25 levels”
“NZD/USD – bond traders once again pointing to a sell-off. This is due to strong US data, and weak NZ inflation data which has led bond traders to price-in 80% chance of a RBNZ rate cut in August. Traders/Investors should follow the trend. Breaking below 0.6970 will pave way for further downside”