GBP/USD trying to hang onto the 1.30 level ahead of a quiet Monday

The Sterling is once again drifting lower on renewed Brexit angst.
US inflation figures are due later in the week, though market sentiment will be the key driver in the meantime.

Joshua Gibson FXStreet

The GBP/USD opens the new trading week testing towards the downside of the 1.3000 major technical level, kicking around the psychological handle in Monday's early trading ahead of a thin calendar that sees Brexit concerns returning to the forefront.

Monday sees little meaningful data on the economic calendar, and the only notable event slated for today for the GBP/USD is the UK's y/y BRC Like-For-Like Retail Sales for July will be clocking in later in the day at 23:01 GMT, and is expected to print at 0.4%, a notable tick underneath the previous reading of 1.1%.

Brexit has returned to the front of the line for GBP headwinds, and concerns over the potential for a no-deal or hard Brexit are once again back on the rise, as the UK's Brexit leaders continue to bemoan the European Union's unwillingness to budge on negotiating terms or show preference t the UK, refusing to allow the hard-line leavers the opportunity to cherry-pick which trade markets they remain in and which they pull out of, stonewalling current talks and trying to force the UK into an all-or-nothing scenario.

For the USD this week will be focused on the upcoming Consumer Price Index figures, though the reading isn't due until Friday and the economic calendar sees little meaningful data for the US.

GBP/USD Levels to watch

The Sterling continues to lean heavily into the bearish camp as broader markets find little reason to begin buying the GBP back up, and as FXStreet's own Valeria Bednarik noted, "the pair is technically bearish, given that in the daily chart, the 20 DMA turned modestly lower while attracting selling interest all through the week. The Momentum indicator in the mentioned chart stands flat below its 100 level, but the RSI heads lower, around 36, leaning the scale toward the downside. Shorter term, the downward potential is stronger, as in the 4 hours chart, the pair keeps moving away from a strongly bearish 20 SMA, while technical indicators remain well into the red, with modest downward slopes."

Support levels: 1.2970 1.2925 1.2885

Resistance levels: 1.3045 1.3085 1.3120

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD climbs to four-month highs near 0.7230

AUD/USD keeps its bid tone well in place for yet another day, this time advancing to the 0.7220-0.7230 band to hit fresh four-month high on Monday. The persistent uptrend in the pair comes on the back of the resurgence of the bearish trend in the Greenback amid unabated tensions in the Middle East. Next on tap in Oz will be the Westpac’s Consumer Confidence index, housing data, and speeches by the RBA’s Hunter and Hauser

USD/JPY holds on just above 154.00

USD/JPY weakens further and remains close to the 154.00 neighbourhood, or seven-month lows, ahead of the opening bell in Asia. The pair’s severe retracement comes in response to rising bets of a rate hike by the BoJ at its next meeting coupled with repatriation speculation, while the offered stance in the Greenback adds to the overall bearish mood.

Gold bounces off lows, back above $4,400

Gold builds on Friday’s losses, although it manages to regain some composure and reclaim the $4,400 mark per troy ounce on Monday. The yellow metal’s decline follows the move lower in the Greenback and steady caution ahead of key US data releases toward the end of the week.

Bitcoin and Gold Outlook: BTC and XAU remain pressured amid sticky US-Iran tensions

Bitcoin (BTC) is correcting below $79,000 on Monday, mirroring the broader cryptocurrency market’s lethargic, bearish-shifting outlook. The Crypto King was rejected near $81,500 last Thursday, suggesting investor exhaustion. Meanwhile, Gold (XAU/USD) remains pressed against the near-term $4,400 support, as focus shifts to the upcoming United States (US) Consumer Price Index (CPI) data on Friday.

Strong US jobs, Middle East tensions and key inflation data ahead

Good morning all, hope you enjoyed your weekend. Markets are starting the week after Friday’s stronger-than-expected US jobs report, which increased expectations that the Fed could raise rates at its September meeting. However, US markets are closed today for the Labor Day holiday, so liquidity should be lower and we may see slower price action.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.