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By Associated FX Analysis Team

Kantox currency update: euro picks up as the dollar rally loses steam

Published August 8, 2018

The euro bounced up on Tuesday to put an end to a negative streak lasting for five consecutive days. Dollar strength seems to have waned as market concerns about the global trade tensions eased, in spite of the reports pointing out to a new US plan to impose tariffs on USD16 billion goods imported from China.

EUR/USD returns above 1.1600. Euro reversal from 1.1750 highs last week was contained right above the 1.1510/20 support area, and the pair picked up on Tuesday, to reach levels past 1.1600. As at London market opening times, the EUR/USD is trading at 1.1615.

GBP/USD: testing support at 1.2900 areaSterling’s reversal from last week highs above 1.3100 has been contained right above 1.2900 but the pair remains on the defensive, amid increasing market concerns about the possibility of a no-deal Brexit. As at London market opening times, the GBP/USD is trading at 1.2935.

USD/JPY: limited below 111.50. The dollar upside attempt seen on Monday were capped at 111.50, and the pair remains trapped within a tight range above 111.00.  As at London market opening times, the USD/JPY is trading at 111.05.

In the Calendar Today

Datawise, today we will also have a light calendar. In the US, the speech of Richmond Fed president Barkin might attract some interest as he might offer some insight into September’s monetary policy meeting.

 Later today the Reserve Bank of New Zealand will release its interest rate decision. The bank is expected to maintain its benchmark rate at the current 1.75% and hint to the possibility of a rate cut in the future. The risk for the New Zealand Dollar is on the downside.

 12:45 GMT        Fed: Barkin’s speech

 21:00 GMT        RBNZ: Interest Rate Decision
Previous: 1.75%           Expected: 1.75%

 21:00 GMT       RBNZ: Rate statement


 

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