The main bank of Russian will likely turn hawkish today. Time to sell USD/RUB?
Market updates on July 30
Key events ahead:
South African unemployment rate – 12:30 MT time.
American CB consumer confidence – 17:00 MT time
- GBP/USD continues to go down on the fears of a no-deal Brexit. At the start of today's Asian trading session, the pound tested the lows at 1.2118. After that, it managed to recover a little towards the resistance 1.2197. However, the downside pressure is still high, and ADX confirms that. If bears take over the market once again, the cable will retest the recent low at 1.2118. The next support will lie at 1.2017. If the British pound is supported, the retest of the 1.2197 level with the following breakout will help the pair to rise further to the 1.2225 and 1.2269 levels.
- The South African rand has weakened on the negative news about Eskom, South African public utility. Even though the company recently received a 49 billion rand bailout from the government, the company is expected to announce more multibillion-rand losses. On H4, USD/ZAR retested the highs at 14.2127 above the 50-period SMA. The next resistance will lie at 14.2416. From the downside, pay attention to the 14.1364 and 14.0682 levels.
- US trade Representative Robert Lighthizer and his team of negotiators will meet with Chinese side today to discuss trade. If the outcome is positive, the Australian dollar may be supported. On H4, AUD/USD continues to move within the downtrend. The next support for the aussie will lie at 0.6881. If this level is broken, this will provoke a further fall to the 0.6866 level. In case of the movement to the upside, the first resistance will lie at 0.6911. After that, pay attention to the 0.6932 level.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?