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Editors’ Picks

AUD/USD reattempts 0.7400 on Australian Retail Sales, China Services PMI

AUD/USD is holding steady close to 0.7400 after the Australian Retail Sales matched estimates in June and Chinese Services PMI rose to 54.9. The aussie's further upside appears elusive amid a cautious market mood, courtesy of the mounting covid tensions and China's techlash. US ISM Services PMI, ADP eyed. 

AUD/USD News

EUR/USD consolidates near 1.1870 ahead of EU Retails Sales data

The selling tone surrounding the US dollar amid falling US Treasury yields keeps EUR/USD on the verge of daily gains. After touching the low of 1.1753, the pair continues to march higher since the beginning of the week.

EUR/USD News

Gold consolidates in the $1,800-$1,820 range

Gold prices notch higher on Wednesday and refresh daily high near $1816. A combination of factors contributes to the movement of the precious metal in a closing trade range of $20 for the past three sessions.

Gold News

Ethereum Classic prepares for 23% ascent

Ethereum Classic price experienced a run-up between July 20 and July 26. However, due to the exhaustion of bullish momentum, ETC faltered and set up two lower highs since July 26. If the selling pressure breaches $43.93, it will invalidate the bullish thesis.

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NZD/USD: Bulls target 0.7100 amid falling wedge breakout, NZ jobs blowout

NZD/USD is flirting with monthly tops near 0.7067, rallying hard on stronger-than-expected New Zealand’s employment data for the second quarter. The jobless rate in the South Pacific Island nation dropped sharply to 4% in Q2 vs. 4.5% expected, confirming an RBNZ rate hike later this year.

NZD/USD News

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Signatures


GBP/USD, THE CABLE

The GBP/USD (British Pound/U.S. Dollar) is the abbreviation for the British pound and U.S. dollar currency pair. Also called “the cable”, this cross belongs to the group of Majors. The GBP/USD tends to have a negative correlation with the USD/CHF and a positive correlation to the EUR/USD currency pairs. The Sterling is one of the four most liquid currencies in Forex and one of the reasons is the highly developed capital market. While 60% of the volume of foreign exchange are made via London, the GBP is not the most traded currency but is quite popular due to the good reputation of the UK monetary policy and a high interest rate.

The GBP/USD reached an all time high of 2.4546 in November 1980 and a record low of 1.042 in February 1985.


GBP/USD FORECAST 2021

The key topic on the GBP/USD Forecast is still being Brexit.

Trump, Biden's new government and covid will be key too. These clouds are set to clear at various paces, making way for rapid changes and new challenges.

Economic figures will likely be the arbiter of Brexit dampening effect, the UK’s high readiness for receiving the vaccine and other factors. The changing relationship between governments and central banks will likely be in focus.

Read the GBP/USD Forecast 2021 by Yohay Elam.


MOST INFLUENTIAL CURRENCIES FOR GBP/USD

Other currencies relate to the GBP/USD pair and can have influence on it as well: USD, EUR,CAD and YEN. This group also includes the following currency pairs: EUR/USD, USD/JPY, AUD/USD, USD/CHF, NZD/USD, USD/CAD, GBP/JPY and EUR/JPY

MOST INFLUENTIAL ORGANIZATIONS FOR GBP/USD

The Bank of England is probably the organization that impacts the most the GBP/USD. It has a wide range of responsibilities, similar to those of most central banks around the world. It acts as the government's bank and the lender of last resort. It issues currency and, most importantly, it oversees monetary policy. Andrew Bailey is the new Governor of the Bank of England since 16 March 2020. Her Majesty the Queen has approved the appointment. He is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses.

The US Central bank, the Federal Reserve of the United States, is also closely related to the pair. Inside that institution, the Board of Governors (also known as the Federal Reserve Board) is carefully observed. The board meets several times per year and announces the interest rates. If rates remain unchanged, attention turns to the tone of the FOMC (Federal Open Market Committee) statement, and whether the tone is hawkish, or dovish over future developments of inflation.

The City of London includes a lot of organizations and institutions that might impact the cable, in particular the London Stock Exchange, the third-largest stock exchange in the world. The LSE allows companies to raise money, increase their profile and obtain a market valuation through a variety of routes, thus following the firms throughout the whole IPO process.

The European Central Bank also has influence on the cable due to the importance of business and trade between the UE and the UK. Any assessment of possible scenarios linked to a macroeconomic decision taken by the ECB has impact on the commercial partners of the Eurozone. The Euro is the second reference currency in the world (after the US Dollar) and any move by its central bank, the ECB, has consequences on the assessment of its partners.