British Pound, GBP/USD, US Dollar, Hang Seng, Crude Oil – Talking Points
- The British Pound was supported at present forward of CPI information tomorrow
- APAC equities transferd larger, joined by commodities and related currencies
- Inflation information may give hints on price strikes.Wsick GBP/USD resume the downtrend?
The British Pound was boosted at present in Asia to start out the week as danger sentiment adopted on from Wall Street’s constructive lead on Friday. Despite this, GBP/USD stays in a downtrend like many different markets as general US Dollar power continues.
After at present’s jobs information within the UK, they may see CPI tomorrow and it’s anticipated to be a daunting 9.1% year-on-year in keeping with a Bloomberg survey. The Bank of England will meet 4th August to determine on how a lot to hike charges.
The upbeat tone within the APAC session noticed all the main inventory indices acquire. Hong Kong’s Hang Seng Index (HSI) climbed over 2.5% on the again of potential stimulus being flagged in China. US fairness futures are pointing to constructive begin to their money session.
Commodity markets are usually larger with the WTI crude oil futures contract buying and selling close to US$ 98 bbl and the Brent contract hovering round US$ 102 bbl. Gold is up barely at US$ 1716 an oz on the time of going to print.
The commodity linked currencies of AUD, CAD NOK and NZD are additionally up on the day to this point.
Looking forward, Canadian housing begins might be launched, whereas within the US, Treasury International Capital (TIC) information will reveal capital flows into and out of the US.
US financial institution earnings will even be watched this week.
The full financial calendar might be considered right here.
GBPUSD Technical Analysis
GBP/USD stays inside a descending development channel with potential for additional bearish momentum. The worth is beneath all interval easy transferring commons (SMA) and so they all have unfavorable gradients.
It has rallied in the previous few periods and if it crosses above the 10-day SMA, it would see a pause in bearishness.
Above there, resistance may very well be on the descending trendline which is at present on the similar stage because the 55-day SMA, 1.2286.
Further up, resistance is likely to be on the prior highs of 1.2333 and 1.2407, the latter is just under the break level of 1.2411.
Support might lie on the current low of 1.1760 of the descending trendline, at present dissecting at 1.1550.
Chart created in TradingView
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part beneath or @DanMcCathyFX on Twitter
ingredient contained in the ingredient. This might be not what you meant to do!