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Tuesday, August 8th
The EUR/USD pair managed to retake its psychological level of 1.1800 in Asian trading session, extending its recovery after major pullback, seen last Friday. By the moment of writing, the pair has eased part of its previous gains from its daily tops, marked at 1.1824, however, remaining in positive mood, as renewed sell-off around the dollar, triggered by yesterday’s comments of Fed N.Kashkari and J.Bullard, is navigating the market today. Both speakers sounded not so optimistic regarding further economic growth pace and inflation that forced the market to reconsider its expectations of possible Fed rate hike in December. Adding to this, the euro maintains a positive mood lately amid more hawkish sentiment of the ECB and improved fundamentals of the Eurozone. Now all traders’ attention shifts towards JOLTs Job Openings report, while EU economic calendar won’t bring any relevant releases today, leaving the pair at the mercy of broad market sentiments during European trading hours.
The GBP/USD pair failed to sustain its recovery mode in early Europe and slipped back to the region of 1.3035 after meeting resistance near the level of 1.3050, as fresh wave of risk aversions approached the market in Asia. Moreover, jitters surrounding Brexit negotiations amid a drop in markets’ confidence of PM T.May’s ability to handle Brexit talks also negatively influence the pound lately. On the other hand, further downside looks unlikely, as the US dollar remains on offers this Tuesday, following dovish remarks of FOMC members. Nothing much is scheduled in data calendar for the pair today, so broad market trend and risk sentiments will continue to navigate the major ahead in the session.
Seems that pressure on the US dollar resumed during the last trading session and the USD/JPY pair has retreated to the region of its 2-day lows, located near 110.50 level. Yesterday the pair failed to extend its recovery and came under bearish pressure after meeting resistance near the level of 111.00, as markets have already passed over recent positive data from the US labor market, while dovish yesterday’s talks of Fed members N.Kashkari and J.Bullard added some pressure on the greenback across the board. Adding to this, broad risk-off sentiments, fueled by poor Chinese trade data, have also provided support to safe-haven assets, such as the yen. Today we will have another quiet data session, so USD price dynamics will remain as a key driver for the pair throughout this Tuesday.
Today the USD/CAD pair is consolidating yesterday’s retreat from the area of 3-week highs, wobbling within the range of 20 pips just above 1.2650 area. Yesterday the pair continued to recover from the area of 2-year lows, expanding its winning streak for the sixth consecutive session, as the US dollar was still benefiting from the solid Friday’s NFP report, while weaker sentiments around oil prices were negatively influencing the Loonie. However, renewed pressure on the US dollar, triggered by dovish talks of FOMC members N.Kashkari and J.Bullard, is forcing the market to pay no attention to slight drop in oil prices on Tuesday. Looking ahead, today nothing much is scheduled in data calendar for the pair, except JOLTs Job Openings and Canadian Housing Starts, which will be released during NA session, so USD price dynamics expected to remain as a key determinant for the pair throughout this trading session.
The main events of the day:
US JOLTs Job Openings – 17.00 (GMT +3)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1745 R. 1.1839
USDJPY S. 110.48 R. 111.04
GBPUSD S. 1.2989 R. 1.3079
USDCHF S. 0.9694 R. 0.9764
AUDUSD S. 0.7871 R. 0.7969
NZDUSD S. 0.7306 R. 0.7444
USDCAD S. 1.2587 R. 1.2759
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