The bullish setup we mentioned in our previous reports is no longer topical. This is due to poor US data released yesterday, as a result of which the currency pair returned within the boundaries of the channel that has been forming since the last months of 2015.
Despite our expectations GBP/USD spiked through the nearby resistances, including the August high, and approached the highest level since July (1.3480).
"Both gold and silver are on the move higher today, with some tailwinds from a considerably weaker USD, precipitated mainly by weaker than expected ECO Data from the ISM Non-Manufacturing Data," – Tim Knight, Prophet Founder (based investing.com)Pair's OutlookThe yellow metal continues to surge on Wednesday, as the commodity broke the resistance put up by the monthly R1 at 1,348.
The Common European currency is trading near the opening price against the US Dollar on Wednesday morning. However, it did fall to the weekly R1 at 1.1230 and rebounded against it during the night to continue a surge, which began on Tuesday.
"The New Zealand dollar fell from near a 16-month high on a trade-weighted basis but is still seen as sufficiently above the levels projected by the Reserve Bank to warrant another cut to the official cash rate in coming months." – based on NZ HeraldPair's OutlookThe New Zealand Dollar continued to book gains against the US Dollar mid-Monday, as the currency
"The Canadian dollar gained the most in five weeks against the greenback after the nation's July trade deficit narrowed more than economists predicted, adding to evidence the Bank of Canada is less likely to lower interest rates." – based on Bloomberg Pair's OutlookThe US Dollar continued to depreciate against the Canadian Dollar by mid-Tuesday, and the day marked the fourth consecutive
"The RBA (Reserve Bank of Australia) is expected to keep the benchmark interest rate unchanged at record low 1.5%, in what will be Governor Glenn Stevens's final rate decision, after the bank cut rates two times in the past four months." – based on Daily FXPair's OutlookAUD/USD picked up where it had left off on the first part of Tuesday's trading
EUR/JPY showed no development on Tuesday morning after Monday's half percent dip
NZD/JPY kicked off year 2016 with a volatile consolidation inside of the bounds of a falling wedge that has been established over the last two or so years. While the scope of fluctuations in June reached 12 percent, the pair did not manage to close outside of the wedge trend-lines, but set ground for a breakout on September 1, which
"The BOJ should wait for the Fed. The present focus of attention is on the U.S. exit policy." - Koichi Hamada, economic adviser to PM (based on Bloomberg)Pair's OutlookThe setup has become even more bullish for USD/JPY than it was yesterday, as the currency pair has confirmed the broken trendline, meaning the US Dollar is willing to keep advancing north. The first target
"Sterling should remain supported as BoE rate expectations and the gilt curve experience a significant revaluation." - Morgan Stanley (based on Reuters)Pair's OutlookThe currency pair is lacking bullish momentum near resistance represented by the 23.60% retracement of the Jun 23—Jul 5 sell-off despite fundamentally strong Pound. Nevertheless, the price managed to fetch our target 1.3385/70 (monthly R1 and August maximum) yesterday.
"The U.S. Labor Day holiday kept volumes subdued on Monday, but new U.S. data releases and any speeches from Fed officials will be watched closely for clues to the timing of any rate moves." - base don ReutersPair's OutlookThe yellow metal continues to struggle with the monthly PP at 1,326.43 for the third consecutive session on Tuesday, as the commodity
"If the ECB extends quantitative easing -- as most economists surveyed by Bloomberg predict -- policy makers may have to reconsider what they can buy." - based on Bloomberg Pair's OutlookThe common European currency traded almost flat on Tuesday morning against the US Dollar. Previously, the currency exchange rate moved lower on Monday, as it moved out of the channel upward
USD/NOK put an end to the rally it had been sustaining for four years adding 70 percent to the value of the US Dollar against the Norwegian Krone, and took a 10 percent dip in 2016. The pair is currently consolidating and we do believe that a symmetric triangle has been formed and that the bullish trend will continue on
The New Zealand Dollar continued to book gains against the US Dollar mid-Monday, as the currency exchange rate steadily moved higher.
Risk-off sentiment caused by the Brexit vote in the United Kingdom caused the Pound to take a dive into all time lows against the safe haven currency, creating a snowball effect of supply and demand when investors cashed out Pounds to exchange them into Swiss Francs and Japanese Yen. An event surpassing the Brexit vote in significance was the abolishment
The USD/CAD pair began to fall sharply on Friday, and it continued the fall during first half of Monday's trading session.
The Australian Dollar continued to struggle in booking gains against the US Dollar on Monday. The pair faced the resistance put up by the monthly pivot point at 0.7589
The Euro suffers majorly against the Japanese Yen on Monday, as the currency exchange rate fell and showed no signs of stopping the fall mid-Monday.
The common European currency is between two strong clusters against the US Dollar on Monday, as the currency exchange rate previously on Friday retreated from the 1.12 level by the end of day's trading session.
The current setup is bullish for USD/JPY, as the currency pair has broken out of the descending channel that had been guiding the price lower since the end of 2015.
The yellow metal is moving lower on Friday morning, as it opened Friday's trading session at 1,314.61 and started moving lower after a slight bounced above the 1,315 level.
The Cable is now well-supported both from the UK and US sides, meaning we may expect an even stronger Pound in the near future.
The Kiwi continues its way back up against the US Dollar, as the rate reached back to the channel upward pattern's middle after almost touching the lower trend line in the middle of this week.