Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Cable rallies to November 2009 highs

Four markets in focus today: GBP/USD, USD/JPY, Commonwealth Bank and Ansell.

GBP/USD

We’ve seen a big move higher in the pound this morning, in a move which took cable to its highest level since November 2009. The move higher in the pound has been pinned on talk of a Vodafone/Verizon deal. BoE Governor Mark Carney was also on the wires last night and reiterated any increases in borrowing costs will be limited and gradual. This has not deterred the pound though as it looks to challenge psychological resistance at 1.68. There is no major economic data out of the UK today, but tomorrow we have CPI due out.  

USD/JPY

The pair has been subdued over the past couple of weeks, with USD weakness being the primary driver of the move. Today we have Japan’s GDP due out, with a jump to 0.7% (from 0.3%) expected. Should this significant improvement materialise, then we could see yen strength persist and weigh on the pair further in the near term. The data is due out just before Japan starts trading at 10.50 AEDT. A retest of 101 might be on the cards if the current weakness persists.

Commonwealth Bank

CBA will be in focus today as it trades ex-div for $1.83. Shares typically trade lower on the back of this and we are likely to see it drop to around $74. This might encourage further near term weakness before the bargain hunters jump in. There is some support in the $74 region and should that be breached then around $72.50 will be the next level to look out for.

Ansell

ANN 1H results look fairly good at first glance with net income jumping 15% to $65.6 million. The company also experienced good revenue growth and delivered a 17 cent dividend. ANN also reaffirmed FY14 EBIT growth in high single digits to low teens and this should help give its shares a lift today. The company is holding onto $19 and could see some buying off this level today.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.