Kantox currency update: consolidation in a calm trading session
28 August 2018 · 2 min read
The major currencies have remained moving within previous ranges in absence of key macroeconomic news over the last sessions, with market sentiment brightened by the US-Mexico trade agreement, that has eased fears about the commercial tensions with China.
EUR/USD: rally finds resistance at 1.1730 area: The euro appreciated again on Tuesday, to hit four-week highs at 1.1730 but it was unable to hold at those levels and has retreated below 1.1700 over the last sessions. As at London market opening times, the EUR/USD is trading at 1.1670.
GBP/USD: capped below 1.2935. Sterling’s rebound from 1.2800 lows last week has been limited at 1.2935 and the pair has pulled back to 1.2850 area. As at London market opening times, the GBP/USD is trading at 1.2860.
USD/JPY: consolidating above 111.00. The dollar bounced up on Tuesday from 110.95 lows but, so far, the pair remains trapped within a narrow range below 111.35. As at London market opening times, the USD/JPY is trading at 111.20.
In the Calendar Today
The main event today will be the second quarter’s US Gross Domestic Product, which is expected to be revised down to a 4.0% year on year growth, from the initially estimated 4.1%. US economy remains growing at record levels thus, we expect this event to be neutral or positive for the dollar.
12:30 GMT US: Gross Domestic Product annualized (Q2)
Previous: 4.1% Expected: 4.0%