GBP/USD clings to gains around 1.3800 ahead of FOMC

GBP/USD bounces off the 1.3770 region on Wednesday.
UK’s Halifax HPI contracted 0.5% MoM in June.
US FOMC Minutes will take centre stage later in the NA session.

Pablo Piovano FXStreet

After briefly testing the 1.3780/75 band earlier in the session, GBP/USD managed to grab some buying interest and retake the key 1.3800 mark on Wednesday.

GBP/USD looks to USD, re-opening of the economy

The sterling comes under pressure on the back of the persistent bid bias surrounding the greenback. Indeed, Cable saw its earlier bullish attempt run out of steam in the 1.3840 region, sparking a subsequent move lower on the back of the dominating risk-off mood.

In the meantime, the quid looks to stabilize in the lower end of the weekly range amidst opposing views stemming from the imminent re-opening of the UK economy (on July 19^th according to PM Johnson) and the strong rebound of the Delta variant cases of the coronavirus.

In the UK docket, house prices tracked by Halifax dropped 0.5% MoM in June and rose 8.8% from a year earlier.

Across the pond, the main focus will be on the release of the FOMC Minutes of the June event.

GBP/USD levels to consider

As of writing, the pair is gaining 0.12% at 1.3808 and a breakout of 1.3898 (monthly high Jul.6) would open the door to 1.3922 (100-day SMA) and then 1.4001 (weekly high Jun.23). On the other hand, the next support emerges at 1.3731 (monthly low Jul.2) followed by 1.3653 (200-day SMA) and finally 1.3566 (monthly low Feb.4).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.