The Bank of England will publish a monetary policy statement and update on the interest rate on Thursday, at 14:00 MT time.
Market updates on August 20
- During the Tokyo trading session, there were no significant movers. Now we will continue to follow the news on Brexit after the comments by Boris Johnson that the UK will leave the European Union on October 31 either with or without a deal. Oh the H4, GBP/USD is testing the ground below the 50-period SMA at 1.2085. If this level is broken, the next support will lie at 1.2049. From the upside, the rise is limited by the 1.2106 level. After that, pay attention to the 100-period SMA and the 1.2140 level.
- The political tensions inside Europe will also attract our attention today, as Italian premier Giuseppe Conte will be speaking at the Senate at 16:00 MT, where he will address the country’s political crisis. In case of more uncertainties, the euro may get weaker. Pay attention to the support level at 1.1075. The next support will be placed at 1.1065. If bulls gets stronger, the first resistance will lie at 1.1088. After that, pay attention to 1.1106 level.
- USD/JPY is testing the support at 106.29. If the risk sentiment fades away, this level will be broken and the next support will lie at the 50-day SMA at 105.96. From the upside, pay attention to the resistance levels at 106.62 and 106.74. After that, the rise may be limited by the 106.95 level.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
Read a short market wrap before trading today!
The United States will publish the non-farm employment change, also known as non-farm payrolls or NFP at 15:30 MT (GMT+3) time on August 6.
Our analyst discusses the latest news and shares his trade ideas on gold, EUR/USD, and S&P 500. Jump in!