The British monthly GDP is announced on Friday at 09:00 MT time.
Market updates on August 13
British average earnings index – 11:30 MT (8:30 GMT) time
US CPI and core CPI – 15:30 MT (12:30 GMT) time
- EUR/USD has continued to consolidate between the resistance levels at 1.1210-1.1223 and strong support at 1.1177. Today's release may bring volatility to the pair. If the USD gets stronger, the 1.1177 level may be broken and the next key level will be placed at the crossover of 50- and 100- period SMA at 1.1162. The next support will lie at 1.1147. Otherwise, if the pair manages to overcome the 1.1210-1.1223 range and sticks above the 200-period SMA, the next resistance will lie at 1.1240.
- GBP/USD rose yesterday, but the further upward movement was limited by the upper border of the descending formation at 1.2106. The key levels from the downside lie at 1.2015 and 1.1993. If the GBP is supported, the retest of the 1.2106 level will be possible. The next resistance for the cable lies at 1.2145.
- Gold inched higher on global tensions and uncertainties. The yellow metal has jumped above the $1,510 level and is moving up towards the $1,544 level. In case of softer risk sentiment, gold will slide back below the $1,510 level. The next support will lie at $1,495.
- Now let’s look at the emerging markets. During the Asian trading session, Singapore’s GDP growth for the second quarter fell by 3.3%. Despite that, the Monetary Authority of Singapore does not plan to change its schedule of meetings until October. As a result, USD/SGD broke to its highest levels since 2017. At the moment, the pair is testing the resistance at 1.3885. The next key level will lie at 1.3910. In case of a reversal, pay attention to the support levels at 1.3859 and 1.3844.
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.
The US unemployment claims are out on Thursday at 15:30 MT time.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.