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MTrading Team • 2023-08-29

GBPUSD rises further past 1.2600 as British traders return after long weekend

GBPUSD rises further past 1.2600 as British traders return after long weekend

Market sentiment remains slightly positive despite a lack of major catalysts as traders defend China-linked optimism amid hopes of witnessing a sooner end to the restrictive monetary policies.

The cautious optimism joins downbeat Treasury bond yields to weigh on the US Dollar, which in turn enables commodities and Antipodeans to edge higher.

That said, GBPUSD stays firmer for the second consecutive day despite witnessing downbeat UK inflation clues versus the hawkish commentary from BoE officials.

However, the EURUSD struggles to defend the week-start rebound as German consumer sentiment figures deteriorate. Furthermore, AUDUSD and NZDUSD cheer China-related hopes of more stimulus whereas USDCAD fails to benefit from softer Oil prices.

Elsewhere, Gold Price remains firmer but Oil struggles to extend the previous day’s retreat from the weekly high as commodity traders remain cautious ahead of US data.

Talking about the cryptos, the top-tier digital assets remain depressed amid fears of more volatility in the Bitcoin and Ethereum prices, as well as fears of harsh regulations.

Following are the latest moves of the key assets:

  • Brent oil picks up bids to reverse the previous day’s pullback from weekly top, mildly bid near $84.30 at the latest.
  • Gold price rise for the second consecutive day to around $1,925 as we write.
  • USD Index prints mild losses while declining to 103.90 by the press time, extending the previous day’s retreat from two-month high.
  • Wall Street benchmarks closed in the green and helped the stocks in the Asia-Pacific zone, led by China, to remain firmer. That said, equities in Europe and the UK edge higher.
  • BTCUSD stays depressed around $26,000 while ETHUSD also drops to near $1,640 by the press time.
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Markets stay in consolidation mode…

Amid a lack of major catalysts and the traders’ need for more to confirm the hawkish comments of major central bankers rolled out at Jackson Hole, the markets remained in consolidation mode during early Tuesday. In doing so, the traders also remain unsure of the China-linked optimism as economic fears surrounding Beijing and Germany prod the global recovery from COVID. Elsewhere, mixed catalysts about the UK inflation conditions and hawkish BoE statements, as well as fears of a recession in Britain, prod the GBPUSD pair’s recovery.

It’s worth noting that the UK traders’ return after a long weekend joins the broad US Dollar weakness to lure the Cable buyers while preparing for the US Consumer Confidence and housing data.

  • Strong buy: USDCAD
  • Strong sell: ETHUSD, GBPUSD, Gold
  • Buy: USD Index, Nasdaq, USDJPY

Mid-tier data eyed

Having witnessed downbeat prints of the German consumer sentiment gauge, the market players will keep their eyes on the US CB Consumer Confidence, Housing Price Index and JOLTS Job Openings to gain a better view of the market. However, the optimists need validation from this week’s US inflation and employment data to keep control.

May the trading luck be with you!