ECB meeting is on the agenda. Will the EUR get weaker?
Emerging market updates
- USD/ZAR has been trading near the crossover of 100-day and 200-day SMAs. Today, traders need to pay attention to the State of the Nation (Sona) address where President Ramaphosa is expected to make comments on the future of Eskom. Will the support package be delivered to the South African electricity public utility? Let’s find out at 18:00 MT time. If the rand is supported, bears will push USD/ZAR below the 14.2761 level. The next support will lie at 14.14. If the ZAR weakens, the pair will rise back above the 50-day SMA. Bulls need to push the pair above the 14.47-14.53 levels to restore the uptrend.
- The Turkish lira was hurt by the news that the US considers three sanctions packages. Today, the Turkish president Tayyip Erdogan said that if Washington imposes sanctions, the countermeasures come immediately. On H4, USD/TRY tested the 5.81 level on his comments. Further uncertainties may push the pair above this level to the resistance at 5.84. Bears will keep the 5.7198 and 5.6975 levels in focus. As far as they are broken, the next support will be placed at 5.6606.
- The Singapore dollar has been strengthening since the beginning of the Asian trading session. USD/SGD has fallen below the 100-day SMA. At the moment, it is testing the support at 1.3560. After the break, bears will target the 1.3533-1.3520 levels. Break below this zone will pull the pair lower to the 1.3469 level. From the upside, there is a resistance at 1.3650 (200-day SMA). Next resistance levels are placed at 1.3688 and 1.3719.
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.
The USA will publish the level of retail sales and core retail sales on September 13, at 15:30 MT time.