Last week we saw a strong rise in the British Pound, and a substantial decline of the Euro.
Last week’s market was dominated by the release of better than expected British inflation data.
The Forex market demonstrated strong activity last week, with a few trends mostly weakening.
This week is also going to be rich in high-impact news releases, but the most significant ones will come from the central banks and affect the Australian and U.S. Dollars.
The EUR/USD chart indicated a bearish engulfing candlestick last week, which closed near a 2-year low price. This is a bearish sign. The Euro is weak, while the USD seems to move higher. However, this bearish trend is pretty slow. Cayman indicator is on the 60 level which means that the pair still has a bearish potential
The U.S-China trade war continues. President Trump announced a delay on new U.S. tariffs against China, which were set to take effect on September 1.
GBP/USD had a growth for the first time in the last five weeks, gaining close to 1.0%. The upcoming week probably will be quiet for cable.
The British economy suddenly showed strong inflation rates last week. The pair almost reached 1.2 mark, proving that this level still is strong support. So we are going to set a buy limit from these levels.
In the U.K., employment numbers were mixed. Salary growth jumped to 3.7%, its strongest gain in more than 9 years.
The Loonie traders seem to be troubled between mixed signals from the upbeat WTI prices and challenges to the US-China trade deal.
WTI rises to $55.00 during Monday morning in Asia.
In its monthly Oil Market Report, the Organization of the Petroleum Exporting Countries cuts forecast for 2019 global oil demand growth to 1.10 million barrels per day when the previous forecast was 1.14 million. It will definitely impact on the oil prices in the short and middle term.
To sum up, here are our targets for:
EURUSD – sell up to 1.10.
GBPUSD – to set a buy limit from 1.20.
WTI oil – sell up to 51.
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