Topic: COZfx: GBP/USD holds steady amid Ukraine events, Yellen speech
COZforex: The pound held steady against the US dollar on Thursday, as concerns over the outcome of political turmoil in Ukraine continued to weigh on market sentiment, while investors followed comments by Federal Reserve Chairwoman Janet Yellen.
GBP/USD hit 1.6617 amid US morning trade, the pair's lowest since February 24; the pair subsequently consolidated at 1.6658, easing 0.06%. COZFX strategist Nigel Boynton said, GBP/USD is predicted to find support at 1.6626, and a drop through could take it to the next support line of 1.6583. Meanwhile, the pair is predicted to find its first resistance at 1.6707, and a rise through could take it to the next resistance line of 1.6745.
The British Pound came under pressure after two of the Bank of England policymakers, David Miles and Spencer Dale downplayed concerns of an interest rate hike in the near future. Separately, another BoE policymaker, Ben Broadbent, noted that at present there was excessive focus on an interest rate hike, however the BoE “would not give any time-specific guidance” on when the interest rates in the nation would rise.
Market sentiment remained under pressure amid fresh political and military tensions between Russia and Ukraine after Ukrainian President Viktor Yanukovych was ousted last week.
On Wednesday Russian President Vladimir Putin ordered 150,000 Russian troops to begin military exercises in central and western Russia, near the border with Ukraine.
Political uncertainty in Ukraine sparked renewed concerns over the outlook for emerging markets, and pressured the Russian rouble to 5 years lows against the dollar. Meanwhile, Ukraine’s hryvnia fell to record lows after the central bank abandoned its policy of supporting the currency.
Meanwhile, in testimony to the Senate banking committee in Washington, Ms. Yellen said it was hard to say how much the recent soft data was due to weather and added that the bank would be attentive to signals on whether the recovery is progressing in line with expectations.
The comments came after the Commerce Department reported that durable goods orders declined by a seasonally adjusted 1% last month, compared to expectations for a 1.5% decline.
(COZ forex UK)