GBP USD

Gold has stalled near major resistance after a powerful rally, while AUD/USD looks stretched and USD/CAD attempts to extend its rebound.

The US Dollar has extended a series of lower-lows and highs and tomorrow brings the Fed’s preferred inflation gauge of Core PCE. It still feels to be a USD/JPY market, but larger bullish themes have built in gold and BTC as a world fueled by debt doesn’t look to soon be turning towards austerity or fiscal prudence.

The US Dollar set a fresh lower-low and then stalled as rate markets continue to harbor the expectation that the Fed will hike later this year. But if looking at this through USD/JPY, the matter gets a bit more complicated.

The Sterling rally remains firmly intact, but stretched momentum is raising the risk of a near-term inflection as the bulls test resistance.

GBP/USD Rises After UK Inflation Ahead of FOMC Minutes. DAX Rises as Global Bond Sell-Off Eases.

GBP/USD is pressing fresh multi-month highs as the rally approaches a technical barrier that could test the durability of the Sterling recovery.

GBP/USD Falls From 1.3550 as UK Jobs Market Weakens, USD Gains. Gold slips as treasury yields & oil rise. FOMC minutes up next.

There will be some key data from the UK to watch this week, which could set the tone for the pound, while the macro calendar in the US is a lot quieter. Once again, much of the market’s direction may therefore come down to crude oil. The greenback has been weighed down in recent weeks by a softer run of data which has reduced expectations of a Federal Reserve rate hike in September.

It was a quiet week in the US Dollar despite a busy economic calendar and a soft raft of US data, but perhaps more important is what didn’t happen and what this says about what could be around the next corner.

CPI printed in-line with expectations and the net result at this point is a stronger Dollar, carried by USD/JPY clawing back following an early-morning sell-off.

It was a shock move of dual intervention two weeks ago but since then, both USD and USD/JPY have clawed back, putting even more emphasis on this week’s US CPI print.

The FX market is centered around the Japanese Yen at this point, as the built-in carry trade faces pressure from the US Treasury department.