With no major releases on the docket, I’m counting on existing market themes to extend GBP/USD’s uptrend.
Think the pound will receive more support in the next couple of hours?
Before we take a look at the setup, here are the Asian sessions’ biggest headlines:
Fresh Market Headlines & Economic Data:
- Oil prices fall on U.S. inventory build, increasing pandemic fears
- China’s CB leading index up by 0.8% (from 0.3%) in June
- AU CB leading index down by 0.4% in May vs. 0.9% increase in April
- Pandemic keeps Japan’s June manufacturing activity pinned at 11-year low: PMI
- Australia’s retail sales up by 2.4% in June
- Japan approves dexamethasone as coronavirus treatment
- Australia, NZ dollars storm chart barriers to multi-month peaks
- Silver rockets higher, gold nears record in flight to havens
Upcoming Potential Catalysts on the Economic Calendar:
- Canada’s CPI report at 12:30 pm GMT
- U.S. house price index at 1:00 pm GMT
- U.S. existing home sales at 2:00 pm GMT
What to Watch: GBP/USD
A quick look at the economic calendar tells us that there won’t be top-tier data releases in today’s London session trading.
Will this lead to an extension of yesterday’s risk-friendly environment?
Remember that bulls are on a roll as traders celebrate the EU’s recovery deal and U.S. leaders possibly doling out another batch of stimulus efforts before the month ends.Before you buy the high-yielding pound like there’s no tomorrow, you should know that Asian equity markets are trading with mixed results while the safe-haven gold has hit new NINE-YEAR HIGHS.
If some sort of profit-taking hits GBP/USD, then it could fall back to the 1.2660 previous resistance level before finding support.
But if London session traders turn out for another day of risk-taking, then we could see Cable hit the 1.2800 handle before the end of the week.
