- The Pound trades sideways after failing to break 1.2730.
- Traders are cautious ahead of a string of key US data this week.
- The broader positive trend remains intact.
The Pound is moving sideways, without a clear direction on Monday, after having failed to extend gains above 1.2760 amid a somewhat stronger US Dollar.
Investors have grown more cautious on Monday after the risk rally witnessed on Friday. With a string of US indicators ahead ending with the Nonfarm Payrolls report on Friday, investors are looking for more data to assess the Fed’s next steps.
Beyond that, the deteriorating situation in the Middle East, with news about the attacks on two commercial vessels in the Red Sea has dampened risk appetite further.
In the calendar today the main event will be US Factory orders. On Tuesday, the focus will be on the UK and US Services PMIs, and the US Jolrs job openings, the first of several US employment indicators.
From a technical perspective, the pair maintains the broader upside trend intact, with 1,2730 resistance closing the path towards 1.2820 and 1.2900. Supports are 1.2600 and 1.2480.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Rebound remains capped near 0.6775 ahead of Fed verdict
AUD/USD stalls its upswing near 0.6775 early Wednesday, following the dismal Australian Westpac Leading Index. Traders await the crucial Fed policy decision before the next leg of a directional move. However, increased bets of an oversized Fed rate cut revive the US Dollar selling, keeping the pair afloat.
USD/JPY extends the slide toward 141.00, Fed awaited
USD/JPY extends the decline toward 141.00 in Asian trading on Wednesday, reversing a part of the previous rebound. The BoJ's hawkish signal that it will hike rates again in 2024 contrasts bets for a more aggressive policy easing by the Fed, smashing the pair heading into the Fed event risk.
Gold price remains close to record high, awaits pivotal Fed decision before the next leg up
Gold price attracts some dip-buying and reverses a part of the overnight corrective slide. Bets for a 50 bps Fed rate cut keep a lid on the attempted USD recovery and lends support. Bulls seem reluctant to place aggressive bets ahead of the key central bank event risks.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Bitcoin rallies with crypto market on steeper Fed rate cut speculation and Q4 positivity
Bitcoin and the crypto market saw a brief rally on Tuesday following speculations that the Federal Open Market Committee may opt for a 50-basis-point rate cut during its meeting on Wednesday.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.