GBP/USD edged above the $1.6100 mark on Monday, hitting fresh 10-day highs as we write. Great Britain is scheduled to release public sector net borrowing data on Tuesday – budget deficit is projected to contract. The data could render more support for the currency. Break above $1.6150 would open the way towards the next short-term targets at $1.6200 and $1.6225. We still expect the $1.6225 mark to cap the upside – this is the long-term trend resistance line and the Oct. 9 high.
USD/JPY opened the week with a bullish gap, but failed to sustain gains and fell back below the 107 mark. The move confirms that the 107.50 area remains strongly resistive for now. It makes sense to reenter shorts on a break below 106.60 with an initial target of 105.00 yen.
AUD/USD is trading in a broad sideways trend with support at $0.8750, $0.8725 and $0.8685. Resistance is at $0.8815/20, $0.8860 and $0.8900. Selling around the latter is a good strategy. Upcoming data releases should bring more volatility: watch the RBA meeting minutes release and Chinese data early on Tuesday.
Recommended Content
Editors’ Picks
AUD/USD regains the constructive outlook above the 200-day SMA
AUD/USD advanced strongly for the second session in a row, this time extending the recovery to the upper 0.6500s and shifting its focus to the weekly highs in the 0.6580-0.6585 band, an area coincident with the 100-day SMA.
EUR/USD keeps the bullish performance above 1.0700
The continuation of the sell-off in the Greenback in the wake of the FOMC gathering helped EUR/USD extend its bounce off Wednesday’s lows near 1.0650, advancing past the 1.0700 hurdle ahead of the crucial release of US NFP on Friday.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Bitcoin price rises 5% as BlackRock anticipates a new wave of capital inflows into BTC ETFs from investors
Bitcoin (BTC) price slid to the depths of $56,552 on Wednesday as the cryptocurrency market tried to front run the Federal Open Market Committee (FOMC) meeting. The flash crash saw millions in positions get liquidated.
FOMC in the rear-view mirror – NFP eyed
The update from May’s FOMC rate announcement proved more dovish than expected, which naturally weighed on the US dollar (sending the DXY to lows of 105.44) and US yields, as well as, initially at least, underpinning major US equity indices.