Goldman Sachs FX Spot Desk Strategies

Big upside surprise to Core CPI in the UK yesterday, with GBPUSD breaking the multiple top from July at 1.5690 and sterling hitting a near 8-year high on a trade weighted basis. USD slightly weaker versus all G10 FX, with the EUR leading the gains. Important data today with the US CPI, where an uptick in US inflation will be key to deciding timing of Fed lift off. We think there’s risks to the upside. Positioning in G10 is still very light.  
{EU} EURUSD Neutral => Look for resistance towards 1.1125/30 and support levels at 1.1022 (overnight lows) and 1.0925 below.  
{JN} USDJPY Neutral => Support and resistance zones remain the same – 123.80/124.05 below with resistance 124.60/70 ahead of 125.30. 
{GB} GBPUSD Higher => We think GBP should outperform, but only marginally bullish against the dollar. Levels: 1.5630/40 support in Cable with 1.5717 (yesterday’s highs) then 1.5730. EURGBP 0.6935 (cycle lows) with 0.7027 ahead of that, 0.7116 resistance. 
{NZ} NZDUSD Neutral => Key levels for the session: Resistance at 0.6650 and support at 0.6468. 
{AU} AUDUSD Neutral => Levels for the session: 0.7440/50 resistance with 0.7300 as support on the downside. 
{CA} USDCAD Neutral => We remain neutral with technical levels for the session: support levels at 1.3000 and 1.2990 below, with 1.3213 as resistance.

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