Technical Analysis

Despite technically being down 0.2% at 1.2779 in Monday trading, GBP/USD remains entrenched within its recent range, supported by the daily cloud top at 1.2706 and capped by the descending 10-day moving average (DMA) currently at 1.2841.

Japanese yen buy-backs persisted in Asia, causing significant declines in USD/JPY and JPY crosses.

As of August 2, 2024, spot gold prices have surged to $2,463.48 per ounce, approaching the historic high of $2,483.60 set in July

GBP/USD drifted higher post-Fed, trading up 0.14% at 1.2854 within Wednesday's range of 1.2864-1.2821.

The market remains uncertain about the direction of USD/JPY and JPY crosses following the Bank of Japan’s (BOJ) recent interest rate hike. Overnight "leaks" revealed that the BOJ raised its short-term rate target to 0.25% and announced a tapering schedule for its Japanese Government Bond (JGB) purchases.

The Gold price (XAU/USD) saw some dip-buying during the Asian session on Tuesday but remained within the previous day's broader trading range and below the $2,400 mark

EUR/USD rallied on Friday and may remain elevated as investor expectations for Fed rate cuts were reinforced by the latest round of U.S. data.

EUR/USD rallied on Thursday, though the manner of trading suggests consolidation is taking place. This may leave investors reliant on the upcoming June U.S. Personal Consumption Expenditures (PCE) report to determine if bearish daily technicals will outweigh longer-term bullish signals.

The ongoing purge in carry trades continues to benefit low-yielding currencies, particularly the yen and the Swiss franc. USD/JPY broke below the key support level at the 100-day moving average (155.37) on Wednesday, sparking increased downside momentum and hitting a low of 153.10, the lowest level since early May.

GBP/USD downside is likely to be limited after bears failed to hold a break below 1.29 on Tuesday.