Forex

 

  • Another day, another sell-off for the pound. The beleaguered currency just can’t catch a break with Brexit uncertainty continuing to overshadow any positive news, for example, this morning’s stronger wages data. The dollar rose ahead of US retail sales, industrial production and speeches from a couple of Fed officials including Chair Jay Powell.

  • Stocks remain supported – for now – as earnings come in thick and fast. Yesterday Citigroup kicked off bank earnings, reporting a mixed set of results. Today saw JPMorgan beat on both fronts with an EPS of $2.82 vs. $2.50 expected on revenue of $29.57 billion vs. $28.64bn expected. Goldman Sachs’ EPS of $5.81 easily beat $4.89 expected but revenues beat at $9.46 billion vs. 8.8 billion expected.  Crude oil was probing resistance ahead of inventories data later

  • On the data front, it has been a mixed day so far. New Zealand CPI met expectations with a quartet +0.6% print. German ZEW missed at -24.5 when -22.1 was expected. In the UK wages beat but jobless claims missed: Average Weekly Earnings +3.4% in the three months to May vs. 3.1% expected and 3.2% last (revised); Earnings excluding bonuses +3.6% vs. 3.5% expected and 3.4% last, and Claimant Count Change came in at +38K vs. +19K eyed. Here is what is coming up next:

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EUR/USD rising after upbeat German PMI data

EUR/USD is trading around 1.1100, up on the day. German manufacturing PMI surprised with 43.6 and other figures also beat expectations. The ECB minutes are next.

EUR/USD News

GBP/USD stabilizing above 1.2100 ahead of the Johnson-Macron meeting

GBP/USD is trading above 1.2100, steady. After German Chancellor Merkel offered UK PM Johnson 30 days to solve the Irish Backstop problem, Johnson meets French President Macron.

GBP/USD News

USD/JPY: Weaker below 106.50, focus on T-yields ahead of Powell

USD/JPY trades weaker below the 106.50 level, tracking the negative S&P 500 futures and a cautious sentiment on the Asian equities, as attention shifts from the FOMC minutes to the Fed's Powell speech for fresh direction. 

USD/JPY News

USD/CNH: Rallies, confirms falling channel breakout

Another wave of CNH selling could soon hit the market as the pair technical charts are reporting a bullish breakout. For instance, the pair has jumped 0.22% to levels above 7.08 today, confirming an upside break of the falling channel on the 4H chart.

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Gold: Trapped in a symmetrical triangle

Gold is trapped in a narrowing price or a symmetrical triangle pattern, according to the 4-hour chart. The yellow metal rose to a six-year high of $1,353 per Oz on Aug. 13 and has charted lower highs and higher lows ever since.

Gold News

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