The USD Tries to Gain Back Losses (Weekly Review)

Little has changed over the past trading week in the financial markets. The USD initially remained under pressure from sellers, which allowed a number of its competitors to test strong resistance levels, but soon its oversold forced speculators to take profits on short positions. Thus, the USD was able to partially regain the losses incurred since the beginning of the week, and in the short term may continue to recover.

Lack of progress in trade negotiations between the UK and the European Union leaves the GBP vulnerable. The enthusiasm of the GBP bulls, caused by the Bank of England's revision of its view on negative rates, was not enough to break through the strong resistance, and at this stage the GBP looks to be able to test the psychological level of 1.3000, and its break will lead to a decline in the direction of the 29th figure.

Despite the "risky" sentiments of investors and the growth of stock indices, the AUD and NZD also failed to break through important resistance, and closed the week with a decline to support levels. The risks of a larger-scale correction in these currencies have grown significantly, and the break through of the supports will open the way to 0.7080 and 0.6500, respectively. Aggravation of relations between the United States and China will play into the hands of the bears.

Schedule for this week:

Monday, August 10
14:00 GMT - USA. JOLTs Job Openings.

Tuesday, August 11
23:50 GMT - Japan. Current Account n.s.a.;
08:30 GMT - United Kingdom. Average Earnings;
08:30 GMT - United Kingdom. ILO Unemployment Rate;
09:00 GMT - Germany. ZEW Economic Sentiment;
09:00 GMT - Germany. ZEW Current Conditions;
12:55 GMT - USA. Redbook Index.

Wednesday, August 12
02:00 GMT - New Zealand. Reserve Bank of New Zealand (RBNZ) Interest Rate Decision;
02:00 GMT - New Zealand. Reserve Bank of New Zealand (RBNZ) Rate Statement;
04:00 GMT - New Zealand. Reserve Bank of New Zealand (RBNZ) Press Conference;
06:00 GMT - United Kingdom. Industrial Production;
06:00 GMT - United Kingdom. GDP;
09:00 GMT - Eurozone. Industrial Production;
12:30 GMT - USA. Consumer Price Index (CPI);
12:30 GMT - USA. Core Consumer Price Index (CPI).

Thursday, August 13
01:30 GMT - Australia. Employment Rate;
01:30 GMT - Australia. Unemployment Rate;
12:30 GMT - USA. Initial Jobless Claims.

Friday, August 14
02:00 GMT - PRC. Industrial Production;
02:00 GMT - PRC. Retail Sales;
09:00 GMT - Eurozone. GDP;
12:30 GMT - USA. Retail Sales.

Author: Anthony Porter, IAFT Analyst