RESEARCH VIA DAILY I FOREX REPORT 16 JUNE 2014

DAILY CURRENCY UPDATE

Pound hits 5-year highs against dollar
The pound rose to its highest level in five years against the dollar on Monday, rising above the 1.70 level after Bank of England Governor Mark Carney warned last week that U.K. interest rates could rise sooner than expected.

GBP/USD hit 1.7011, the highest since August 6, 2009 before pulling back to 1.6978, 0.07% higher for the day.
 
Cable was likely to find support at 1.6950 and resistance at 1.7050.
 
Sterling continued to build on gains after Mark Carney said last Thursday that rapid economic growth and the steep decline in the jobless rate mean that the time to begin raising interest rates is growing closer.
 
"There's already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced. It could happen sooner than markets currently expect," the BoE governor said.

NZD/USD rises to nearly 5-week highs
The New Zealand dollar rose against its U.S. counterpart on Monday, to trade near five- week highs as Friday's U.S. consumer sentiment data continued to weigh on demand for the greenback.

NZD/USD hit 0.8700 during late Asian trade, the pair's highest since June 12; the pair
subsequently consolidated at 0.8687, gaining 0.25%.
 
The pair was likely to find support at 0.8606, the low of June 12 and resistance at 0.8746, the high of April 10.
 
Sentiment on the greenback remained vulnerable after the preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2 on Friday, down from 81.9 in May, missing expectations for an uptick to 83.0.

AUD/USD almost unchanged in cautious trade
The Australian dollar was almost unchanged against its U.S. counterpart on Monday, amid ongoing concerns over violence in Iraq, while Friday's U.S. data weighed on demand for the greenback.

AUD/USD hit 0.9417 during late Asian trade, the session high; the pair subsequently consolidated at 0.9404, inching up 0.03%.
 
The pair was likely to find support at 0.9343, the low of June 10 and resistance at 0.9461, the high of April 10.
 
Concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment, amid fears over the impact of reduced oil supply from one of the world’s largest producers on global growth.
 
Meanwhile, the greenback remained under pressure after the preliminary reading of the University of Michigan's consumer sentiment index for June came in at 81.2 on Friday, down from 81.9 in May, missing expectations for an uptick to 83.0

Dollar lower against yen, euro steady
The dollar slid lower against the yen on Monday as concerns over the escalating conflict in Iraq bolstered safe haven demand for the Japanese currency, while the euro was steady close to 4-month lows against the dollar.

USD/JPY was down 0.20% to 101.78 from 102.03 late Friday.
 
The pair was likely to find support at 101.35 and resistance at 102.40. Concerns over the ongoing Sunni insurgency in Iraq continued to weigh on market sentiment, amid fears over the impact of reduced oil supply from one of the world’s largest producers on global growth.

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