|Day's Range||1.269 - 1.269|
|52 Week Range||1.2481 - 1.3360|
The British pound fell a bit during the trading session on Wednesday, after selling off rather significantly on Tuesday. This is the top of the range that we been in for some time so it makes sense that we pulled back.
European markets increased as optimism grew regarding U.S.-China trade talks at the coming G-20 summit. U.S. Treasury Secretary Steven Mnuchin told CNBC that a trade deal with China was “90% of the way there” when talks broke off. Speaking in Bahrain, Mnuchin said he expected U.S. President Donald Trump and Chinese President Xi Jinping would make progress on a deal at the G-20 summit in Japan later this week.
London markets were flat as Conservative Party leadership candidate Boris Johnson invoked the Napoleonic blockade in discussions of a no-deal Brexit. Former U.K. foreign secretary Boris Johnson said potential European Union tariffs that could emerge in a no-deal Brexit scenario would be “bizarre” and “a return to Napoleon’s continental system”. The leading candidate for head of the Conservative Party and by extension, Prime Minister, said in a radio interview that while he was not seeking a no-deal Brexit, the U.K. needed to be prepared for such an outcome in order for the EU to understand how serious the U.K. side is.
"These people are devaluing their currency because they’re not doing well against us," Trump told Fox Business News in an interview. "So they devalue and we can’t. We are no longer on a level playing field."
GBP/USD fell sharply lower on Tuesday after Fed member speeches were less dovish than expected. The pair is testing support from the 100 moving average on a 4-hour chart in early European trading on Wednesday.
Based on the early price action, the direction of the September U.S. Dollar Index on Tuesday is likely to be determined by trader reaction to Monday’s close at 95.487. If the Euro posts a reversal top then look for the index to post a reversal bottom.
The RBNZ holds steady with FED Chair Powell holding back from talking up a near-term rate hike. For the day ahead, stats, Iran and China are in focus.
Investing.com - The U.S. dollar edged higher on Wednesday, pulling away from a three month low as markets dialed back expectations for aggressive interest rate cuts by the Federal Reserve next month, but expectations for some monetary easing checked the currency’s gains.
Earlier the day, RBA’s Bullock talked about “Modernizing the Australian Payments System” in Berlin. The Crude prices remained steady near $57.88 bbl as focus diverted from US-Iran tensions to US-Sino trade talks
The British pound has initially tried to rally during the trading session on Tuesday but has ran into a significant amount of resistance above at the 50 day EMA. By doing so, it looks very likely that we are going to roll over from here. However, there are always two possible scenarios at the very least.
London markets ticked down Tuesday as Conservative Party leadership frontrunner Boris Johnson’s campaign floundered. Former U.K. Foreign Secretary Boris Johnson faced rising scrutiny as he campaigned for leadership of the Conservative Party. Johnson, who most pundits and polls expect to become the next Prime Minister, hit back against reports of domestic turmoil with his girlfriend, Carrie Symonds, saying it was none of the public’s business.
EUROPE MARKETS European stock markets ticked down Tuesday as U.S. and China representatives began signalling ahead of the G-20 summit. How did markets perform? The Stoxx 600 (XX:SXXP) dipped 0.1% to 383.
GBP/USD pushed higher in early European trading to levels not seen since late May. The pair is threatening to break a critical resistance level that could lead to renewed upside momentum.
Negative comments ahead of trade talks and rhetoric from Iran in response to the prospect of sanctions dampen the mood ahead of the European open.
Investing.com -- The dollar continued its decline in early trading in Europe Tuesday, with the yen and euro strengthening as traders anticipate the erosion of the interest rate premium on dollar assets.
The British pound initially tried to rally during the trading session on Monday but has found the 1.2750 level to be too much in the way of resistance yet again. That being the case, it looks as if we are trying to continue the downward momentum.
After an impressive surge higher on Friday, GBP/USD has fallen back a bit from a horizontal level that has held it back for a month. With the momentum behind the recent rise, I suspect the pair will look to break higher sometime this week.
It’s a mixed start to the day as the markets look to gauge what’s next for Iran. Any retaliation to new sanctions will need to be looked out for…
There has been a handful of good data released in the United Kingdom in recent weeks but it would be misleading to see this as a sign that growth is on the verge of a prolonged rebound.
Wednesday’s Fed rate cut hints on “an accommodative” stance continued to weigh over the Index. German June Markit Manufacturing PMI reported above estimates. The USD/CAD pair was showing some slight recovery movements throughout the day.
The British pound initially fell during the week, reaching down towards the 1.25 handle. However, we have turned quite a bit of buying pressure in that area, sending this market closer to the 1.2750 level again. That is an area of resistance, so the question is where do we go next?
The British pound rallied a bit during the trading session on Friday but ran into a bit of resistance as I have pointed out on the chart. That being the case, it looks as if we could fall back into the consolidation phase. However, we have a clear area where the buyers could take off.