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.
Recommended Content
Editors’ Picks
AUD/USD gains momentum above 0.6500 ahead of Australian Retail Sales data
AUD/USD trades in positive territory for six consecutive days around 0.6535 during the early Asian session on Monday. The upward momentum of the pair is bolstered by the hawkish stance from the Reserve Bank of Australia after the recent release of Consumer Price Index inflation data last week.
EUR/USD holds positive ground above 1.0700, eyes on German CPI data
EUR/USD trades on a stronger note around 1.0710 during the early Asian trading hours on Monday. The weaker US Dollar below the 106.00 mark provides some support to the major pair.
Gold trades on a softer note below $2,350 on hotter-than-expected US inflation data
Gold price trades on a softer note near $2,335 on Monday during the early Asian session. The recent US economic data showed that US inflationary pressures staying firm, which has added further to market doubts about near-term US Federal Reserve rate cuts.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.