Narrow ranges have been prevailing so far today. A backdrop of rallying stock markets hasn’t inspired directional impetus in the forex realm. News that University of Oxford/AstraZeneca has resumed its phase-3 trial of its candidate vaccine for the coronavirus was taken as a buying cue for stock investors. The trial had been paused last week after one of its volunteers fell ill.


EURUSD has been holding in the mid 1.1800s, which is roughly at the midway mark of the range that’s been seen over the last four weeks. Cable has lifted from under 1.2800 and posted an intraday high at 1.2859. The pair last week dropped precipitously and pegged a seven-week low at 1.2763. At prevailing levels the Pound remains down by 2.6% from week-ago levels, and by 2.1% in the case against the Euro. Some furtive buying may be seen near-term, perhaps with the aim of triggering some buy stops, but the overall outlook looks bearish for the Pound. EU-UK and intra-UK tensions are running high following the UK government’s gambit to unilaterally amend the EU Withdrawal Agreement. 4 previous Prime Ministers, (Blair, Brown, Major & May), Mrs May’s Attorney General (Geoffrey Cox) and even David Cameron have all expressed concerns ranging from voting again on the Bill (Cox) to this is a high risk negotiating stance and nothing has been decided yet (Cameron). Additionally, there has been a surge in coronavirus cases in the UK and Europe (not to be confused with hospitalisations/deaths, which remain at very low levels) which has led the UK government to introduce fresh nationwide social restrictions and impose a lockdown on the country’s second biggest city, Birmingham. The UK’s wage support scheme is also due to expire in October, and the government’s official line is that it is not going to be extended. So the outlook looks bearish for the Pound.


Elsewhere, USDJPY has tracked lower (105.90) following the landslide victory for Yoshihide Suga in the leadership election of the ruling LDP party, which means he will become the new prime minister after Shinzo Abe steps down. He is not expected to herald much change in prevailing policies, although he may seek a fresh mandate for himself before the scheduled General Elections on 22 October 2021. AUDUSD is holding around 0.7278 pivot point, remaining well within the range seen on Friday. USDCAD has been plying a narrow range in the mid 1.3100s.

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD slips from highs as investors await US Retail Sales

EUR/USD has backed down from the highs near 1.20 as the dollar benefits from the Fed's upbeat mood. All eyes are on US Retail Sales, which are set to leap. 


GBP/USD rises toward 1.38 ahead of US data, Brexit meeting

GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed. 


Bitcoin on-chain data shows BTC is reaching “peak hype”

Bitcoin’s on-chain data suggest a short-term correction may be needed before Bitcoin could continue its price rally. Market sentiment toward Bitcoin poses a major concern for the cryptocurrency, indicating it is approaching “peak hype.”

Read more

XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales

Gold is breaking higher as the US dollar rebound loses steam. The US Treasury yields retreat ahead of the Retail Sales release. XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold News

Coinbase (COIN) closes down 14% from the $381 opening price, what next?

After a dream debut for the cryptocurrency exchange Coinbase Global Inc. (COIN) on Nasdaq at $381, the shares rallied as high as $429.54. Although the upswing failed to sustain, as Bitcoin fell from record highs and tech stocks tumbled across the board. 

Read more