Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
Main market movements on August 6
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Let’s look at fundamentals, which may lead to the current situation on the market. Yesterday the US ISM Non-Manufacturing PMI came out 58.1, 1 point higher than the June report and also better than the expected 55.0.
The US ADP Non-Farm Employment rose only by 167 000, while analysts predicted 1.2 million. As a result, most investors foresee that NFP may be worse than the forecasts tomorrow. Gold is gaining on those expectations. It has just crossed the key resistance at $2 050. It will meet the next barrier at $2 100. Support levels are at $2 030 and $2 000.
There is some positive news on vaccine. The leading medical expert Anthony Fauci claimed that the US will have tens of millions of vaccine doses by the end of the year. Therefore, stocks surged.
The S&P 500 has approached the high of January 23 at 3 325. If it breaks it through, it may surge to the all-time high at 3 390. Otherwise, if the price changes its direction, it will meet the support at 3 270 and then at the low of July 28 at 3 210.
The US crude oil inventories contracted by 7.4 million barrels during the last week, beating all estimates. Oil prices went upward.
The WTI oil has got closer to the 200-day moving average. If it manages to cross it, it will surge to 43.50. The next resistance will be at high of March 2 at $47.50. Support levels are at the 50-day moving average at $39.50 and at $38.00.
The Bank of England left rates unchanged as expected. Moreover, the central bank increased its growth forecasts. The overall optimistic message pushed the British pound upward.
If GBP/USD manages to cross the 100.0% Fibonacci retracement level, it may jump to the high of December 13 of the last year at 1.3325. Otherwise, if it reverses from it, it will meet the support at the recent low at 1.3050.
Follow US unemployment claims report today at 15:30 MT time!
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