GBP/USD has made another new high recently, as it broke slightly above the bullish pennant or flag pattern on its 1-hour time frame.
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The US dollar had a rough day in the markets as it scored a few gains only to lose it all at the end of the NY session.
The pound has been gaining steadily against the dollar in the past few trading days, as strong data from the UK and doubts on the Fed’s September taper plan have combined to push GBP/USD past key resistance levels.
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The dollar weakened yet again in yesterday’s trading as the PPI reports turned out to be a disappointment while Bullard’s speech cautioned against easing too soon.
AUD/CAD’s falling channel on its 4-hour time frame is still holding really well, as the pair is now making another test of the trend line with stochastic in the overbought region.
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The Greenback enjoyed stellar gains in yesterday’s trading, as the US retail sales report came in better than expected. In particular, the core version of the report showed a 0.5% uptick, which is better than the estimate of a 0.4% increase, while the headline figure came in at 0.2% as expected.
The bottom of GBP/JPY’s 4-hour range held as support yesterday as the pair bounced off the 149.00 area and rallied to 152.00. Right now, GBP/JPY is stalling around the middle of the range, still undecided whether to go up or down.
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The US dollar started the week on a strong note, despite the Federal budget balance release which confirmed that the government surplus of more than 100 billion USD has turned into a deficit of nearly 100 billion USD.
The UK is scheduled to release its annual CPI reading today and possibly show bleaker inflation of 2.8% compared to the previous 2.9% reading. However, this is still way above the BOE’s 2% inflation target, which should remind traders that the central bank is still closely monitoring the annual CPI readings.
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The dollar bounced back to action against some of its counterparts on Friday, as traders booked profits off their short trades ahead of the weekend.