The British pound continued to flub lower by Trump's comments favoring hard Brexit. The White Paper published by the UK government also has triggered some negative reactions. That document still needs to be analyzed before we see the true reaction of the markets . We would expect GBPUSD to continue suffering and test new lows at the hands of confused bears.
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GBPUSD is pushing to reach important level 1.3220, we would expect the currency pair to break that level and touch 1.3240 before it drops again. The price action will be mostly likely settled in the range 1.3180 - 1.3240. The UK government is scheduled to publish Brexit “white paper” laying out Britain’s future relationship with the EU.
Today, traders would be looking to ECB Monetary Policy Meeting that is scheduled for 11:30 GMT. Looking on the one hour chart we see a bearish flag formation that could send the Euro further down to test 1.1650. We expect the price action to reach 1.1700 before the drop resumes.
Yesterday, the major pair found resistance at around 111.30 and later on gave up the gains with a drop to 110.80 level. Today, the wires are once again hit by the trade war, with US planning to levy tariff on USD 200bn of Chinese goods. Currently, USDJPY is trading around 111.00, we would expect an immediate effect on the U.S. dollar and prices to reach 111.30 level.
The post-payrolls sell-off pushed the EURUSD to a high of 1.1790, and we would see a drop to 1.1700 as a healthy correction, before the uptrend resumes. Today, traders would be looking for the German ZEW surveys data, that is scheduled for 09:00 GMT.
The U.S. department of Labor Statistics will be releasing the monthly official payrolls report today. According to the economists polled, today's payroll figures are expected to show that the U.S. economy added 200k jobs during the month of June. This marks a somewhat slower pace of momentum compared to 223k jobs that were registered the month before.
It is going to be a volatile day for the U.S. dollar with the release of the ADP's private payroll numbers. The data, which is due to be released at 13:15 GMT is forecast to show that the U.S. economy added 190k jobs during the month of June.
EURUSD looks to 1.1700 ahed of Eurozone PMIs, we would expect a slow day amid holidays in the United States. Yesterday, the Euro was boosted by the migration deal in Germany, and we will probably see the positive run continue in the near term. Currently, Euro is trading up 0.15% at 1.1670 and with the U.S. markets closed today, we will eventually see the pair closing higher on the day.
Today's trading signal is GBPUSD, the currency pair was seen extending the gains yesterday and price action is consolidating near the resistance level 1.3220. We expect that the GBPUSD currency pair will eventually break off the resistance level to close higher on the day.
Today, it is a light calendar for the Euro, and the lake of actionable releases will most likely keep EURUSD in a tight range. On Monday, Angela Merkel finally reached an agreement over the migration deal. The euro is trading at around 1.1640 against the US dollar, and we would expect the positive news from Germany to boost the shared currency on a intraday basis.
The monthly PMI report from Markit for the UK is expected to be released for the construction sector today at 0930 GMT. According to the economists polled, the construction activity in the UK, as measured by the PMI is expected to remain subdued at 52.3. This marks a modest decline from 52.5 seen in the previous month.
Today's trading signal is EURUSD, the currency pair was seen posting strong gains on Friday with price action retreating partly earlier today. However, we expect the declines to push the currency pair back to the lower support and then prices to bounce, eventually closing higher on the day.
The Euro was heavily appreciated after the late night deal on migration in European summit. During the Asia session the EURJPY reached 129.00 level and after a pullback to 128.60 we would expect further gains for the common currency.
The European Union reached an agreement on the migration policy at the EU Summit and the Euro responded very positive during the Asia session reaching 1.1665. We would expect a sharp decline towards 1.1630 before the pair regain power on the European and US sessions. Traders will also wait to see the CPI report in the EU, which is scheduled for 09:00 GMT later today.
Today's trading signal is GBPUSD, the pound was seen posting strong declines but following a rebound off the support level at 1.3060, the currency pair could be extending the gains to the upside. The rebound off the support level could signal that the GBPUSD will be closing higher on the day.
The final revised estimates for the first quarter GDP covering the three months ending March 2018 will be released today at 13:30 GMT. According to the economists polled, no changes are expected as the U.S. economy is confirmed to have increased at a pace of 2.2% in the first quarter.
Traders would be looking to hear Governor Mark Carney speaking after the financial stability report from the Bank of England, the speech is scheduled for 08:30 GMT today. Looking at the charts, we would expect GBPUSD to break the 1.3220 support and action to be determined on the downside.
Today's trading signal is EURUSD, the currency pair was seen posting losses on the day on Tuesday. The rebound is however expected to remain limited. Following a modest intraday rebound to 1.1680, the EURUSD currency pair is expected to close lower on the day.
Today's trading signal is USDJPY, the major currency pair has been trending weaker and on an intraday basis, support has been formed at 109.43. We expect USDJPY to rebound off the support level, then to find resistance near 109.80 and eventually to close lower on the day.
The housing markets remain a key factor considering that the U.S. Federal Reserve has been hiking interest rates. This could lead to higher mortgage rates that could dent the amount of work done in the housing sector. However, with wage growth seen rising steadily the prospects are positive.