Upside hopes for the GBP?
The British monthly GDP is announced on Friday at 09:00 MT time.
Main market movements on September 21
Safe-haven currencies such as the US dollar and the Japanese yen have started the week on the positive footing amid rising new virus cases, pushing riskier assets to the downside.
US-China tensions continue escalating. The US President Donald Trump approved Oracle’s bid to buy TikTok’s US assets, while US curbs on WeChat have been put on hold by a judge. Besides, investors are waiting for some development over fiscal stimulus in the USA as the impasse of the stimulus package in combination with upcoming elections weighs heavily on the US dollar. All eyes on Powell’s speech this evening.
Meanwhile, new virus cases are rising in the European Union. Even fresh restrictions have been imposed in Greece and Denmark. The European Central Bank has launched a review of its pandemic bond-buying program. It will decide for how long the PEPP will take place and debate the necessity of extra asset purchases.
Watch our daily trading plan!
Let’s look at the EUR/USD chart. It has just broken the strong resistance of 1.1800. The move below the support of 1.1755 will push the pair even deeper to the level at the next round number of 1.1700. Resistance levels are 1.1800 and 1.1880.
S&P 500 has dropped to the lowest levels since August 5 as a massive sell-off of tech stocks has started. Amazon, Facebook, and Apple slumped dramatically. The move below the low of July 31 at 3 250 will drive the stock index lower to 3 200. On the flip side, if it jumps above the resistance of 3 330, it will push the price to the high of September 18 at 3 370.
Moving on to gold, it has been trading sideways. The move above the high of September 18 at $1 960 will drive the price to the next resistance of $1 970. Otherwise, if it drops below the support of $1 925, it will push the price to the next support of $1 910.
Finally, let’s talk about the British pound. It has been driven upwards by the upbeat comments of the European Commission President over Brexit. However, the fresh lockdown in the country added headwinds to the GBP. The move below the low of September 15 at 1.2830 will drive the price lower to 1.2780. Resistance levels are 1.2960 and 1.3015.
Similar
Strong USD on Tuesday
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
Latest news
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Deposit with your local payment systems
