|Day's Range||1.215 - 1.215|
|52 Week Range||1.2019 - 1.3349|
In the USD Index, the bulls continued to take over the bears even today. Interim, rising odds for a no-deal Brexit was making the Cable traders upset.
The British pound bounced during the week against the US dollar and what would have been a bit of a reprieve after a nasty selloff. That being said, there is a large, round, psychologically significant figure that has come into play as well.
The British pound rallied significantly during the trading session on Friday, reaching into the previous consolidation area as we head towards the weekend.
GBP/USD carved out a bottom in the early week and has been consolidating higher even though the dollar has had a firm bid for most of the week.
After marking the day’s opening near 105.89 level, the Ninja showcased a pretty decent performance on Thursday. Greenback continued to sustain positive price actions even today.
The key UK yield curve (2/10) has inverted, adding to the woes for the UK. With Sterling still mired in multi-year lows and probability of a No-Deal exit from the EU increasing, where does this leave the outlook for Sterling, the BoE and the wider UK economy?
The British pound rallied against its counterparts in early trading on Thursday after UK retail sales came in ahead of expectations.
Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the short-term 50% level at 97.840.
British retail sales in July grew 3.3% compared to a year ago, according to data released Thursday. Economists polled by FactSet expected a 2.6% rise. The Office for National Statistics said both value and volume rose in July, and department stores saw the first increase this year.
Despite positive AUD-specific data, the Aussie pair was heading south to end the day on a negative note. Fiber kept slipping throughout the day shrugging towards upbeat Eurozone and German Q2 YoY GDP data.
U.K. consumer prices in July rose to 2.1% year-over-year from 2% in June, and above the economist forecast of 1.9% growth. Core CPI also rose more quickly than forecast, rising a tick to 1.9%. The Office for National Statistics cited rising prices in games, toys and hobbies, and accommodation services, as well as clothing and footwear and "other" financial services, which offset declines from transportation services and electricity and gas.
After three adverse closings in a row, the Greenback was underway a positive closing today. After touching the 7.0707 mark yesterday, the USD/CNY pair was heading downside on Tuesday.
Investing.com - The U.S. dollar surged on Tuesday after the U.S. Trade Representative delayed tariffs on a number of items, including toys and computer consoles.
GBP/USD has been hovering around resistance and UK jobs data has not triggered much of a reaction. Investors will shift their attention to US data as CPI will be released later today.
Unemployment in the three months to June rose a tenth to 3.9%, the Office for National Statistics said Tuesday. The number of jobless claimants rose 28,000, while average weekly earnings including bonuses were up 3.7%. Economists were expecting a 3.8% unemployment rate, a 20,000 rise in claimants and 3.7% wage growth, according to a Factset-compiled consensus.
Escapist behavior towards defensive assets and currencies remains the main trend in the markets. On Monday, the Japanese yen rose to 105.04 per dollar, bringing this month’s growth to 3.5%.
The British pound initially fell during Monday’s trading but then turned around to rally towards the 1.12 handle above. This is the beginning of resistance, so quite frankly I think that we will eventually roll over. Ultimately, that should be a nice selling opportunity.
The Euro and the Pound are still under pressure due to the high likelihood of further political turmoil. Matteo Salvini, the Deputy Prime Minister of Italy, called for fresh elections. There are speculations that the Italian government consisting only of the “Lega Nord” party members may get into hot water with the European Union.
Investing.com - The dollar surged against higher-yielding currencies on Monday as a plummeting Argentinian peso sent shockwaves through emerging markets.
The British pound caught a bid in early day trading despite a firming dollar as the idea of a no-confidence vote brought some confidence to reaching a Brexit deal.