September monetary policy minutes released on Wednesday showed that 2 out of 9 MPC members still support a 0.25% rate hike. However, the overall tone rather dovish: majority of the policymakers point that inflationary pressure remains too low to justify a rate hike. In their view, negative risks for the economy increase in Q4. Great Britain released strong labor market data on Wednesday with unemployment falling from 6.4% to 6.2%.
Technically, the cable jumped to $1.6520 on Friday. The pair is trying to break out of the bullish weekly Ichimoku, but is capped by the 55-week MA so far. Given the market “relief” on the Scottish vote, we expect the pair to extend the upside on the coming week. The pace of growth will likely slow down though: we target the $1.6600/6620 area (50% Fibonacci from the July-September selloff). Next resistance lies at $1.6690 (March lows). The picture will remain bullish above $1.6250.
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AUD/USD remains under pressure above 0.6400
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The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
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Bitcoin price uptrend to continue post-halving, Bernstein report says as traders remain in disarray
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Australia unemployment rate expected to rise back to 3.9% in March as February boost fades
Australia will publish its monthly employment report first thing Thursday. The Australian Bureau of Statistics is expected to announce the country added measly 7.2K new positions in March after the outstanding 116.5K jobs created in February.