UK highlights

Despite UK Industrial production reporting an increase of 0.1% m/m in June, as expected by the market, a technical break on the EURGBP cross-triggered a Sterling sell-off. GBPUSD dropped to a low of 2.0281 below rebounding to 2.0321.

However, all eyes will be on the FOMC meeting today, with market widely expecting the Fed to keep interest rate on hold at 5.25%. If the Fed maintains that inflationary pressure remains a predominant concern, we may see a possible rebound in the dollar as technicals are pointing towards dollar-oversold levels.

Having broken out the downtrend line EURAUD look to rally up to 1.6400. Long on dips at 1.6050. Place stops below 1.5950.