The GBP is going to be volatile today, while USD/TRY may be looking for a retest of its highs. Read more!
Market updates on August 14
Key events ahead:
British CPI – 11:30 MT (8:30 GMT) time
- Yesterday the US trade representatives had a productive phone call with China, after which Washington announced that it was delaying the 10% tariffs on some of the Chinese goods. China, in its turn, confirmed that the trade talks between the two leading economies were expected to continue in September. The news boosted the risk sentiment and shook the market impressively. USD/JPY tested the 106.95-107.05 highs (the levels remained untouched since August 6) on the news and corrected to the downside facing the 106.31 support level. From the downside, pay attention to the support levels at 105.99 and 105.8. If bulls push the pair higher, it will rise towards the 106.62 level. After the breakout, the next resistance will lie at 106.74. The next key zone for bulls will lie at 106.95-107.05.
- GBP/USD has been supported by the higher-than-expected CPI data. If the British pound strengthens more, the cable will break the upper border of the range at 1.2073 and test the resistance at 1.2098. If this level is broken, the next resistance will lie at 1.2145. In case of the pound’s weakness, GBP/USD will slide below the 1.2047 level. The next support will lie at 1.2015.
- USD/CNH slid below the 7 level on the softer US-China trade relations. However, after the weaker indicators for China released during the Asian trading session, the pair reversed towards the support-turned-resistance level at 7.0436. Pay attention to the 7.0743 level which will be in focus if risk-off sentiment appears. Alternatively, the support at 7.0066 followed by the 6.9894 level will be in focus.
- Despite the better-than-expected wage price index for Australia, AUD/USD has tested the ground below the 50-period SMA. If it continues to fall, the 0.6763 level will be reached. After that, the aussie will be vulnerable to the fall towards the 0.6749 level. If the risk sentiment increases, the test of the resistance level at 0.6799 will be possible. The next one will lie at 0.6817.
Australia will publish the level of employment change and the unemployment rate at 3:30 MT on October 17.
The escalation of the US-China trade dispute and the Brexit uncertainties keep affecting the market. Read more!
The reports that the UK and the EU are close to complete a draft Brexit deal have pushed the British pound higher.