Session recap: consolidation mode at end of a dramatic week for GBP

FXStreet (Guatemala) - Markets were somewhat in consolidation mode at the end of the week and the session has been somewhat sleepy, with World Cup distractions no doubt! We prepare now for the week ahead and the FOMC, focusing o the yield differentials, but meanwhile:

EUR/USD remained pretty steady after slipping to the lows of 1.3520 in sleepy markets bar some of the short covering up to 1.3540. Markets attention will likely revert back to the interest yields ahead of the FOMC next week although today’s upset for the EZ from Italy in respect of short falls in bank capital is a reminder of the euro crisis in the background.

USD/JPY was a non-event and very quiet post yesterday’s gains.

GBP/USD was in consolidation mode after the bulls took the pair higher on Carney’s hawkish speech yesterday which gave the sense that a rate hike is coming sooner than we had been expecting. 1.7000 is a number that the bulls see as a relatively easy task ahead as move into next week while the range today has been between a cool 30 pips around the middle of the handle.

Key Events:

US producer price fall

University of Michigan consumer sentiment disappointed

Canadian manufacturing sales were weaker than expected

Meanwhile, Spain lost 5-1 to the Netherlands – just saying! Have a good weekend.

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