US stocks are rebounding and the pound is jumping and approaching the 1.33 level
Global equities are relieved in light of the fresh US and Chinese tariffs on reciprocal imports were less tough than expected continue to plague the day. However, market participants remained cautious ahead of the next steps in the US-China trade war.
The cable managed to recover from Wednesday’s losses has the momentum has turned positive for the session despite the negative Brexit talk being present at the informal EU summit in Salzburg, while UK PM Theresa May’s proposal has mostly been welcomed by EU leader, they continue to dig their heels in over the Irish border problem and have asked the UK to come up with another proposal.
The latest release of UK economic data has been favorable to sterling bulls with August retail sales beating expectations while painting a more optimistic picture of the UK high street.
European equities are seen trading higher following the lead that was set earlier by Wall Street, with the prevailing risk-on mode, market participants are ignoring concerns over the trade dispute between the United States and China. Earlier in the week, the US targeted China with tariffs of 10% on $200 billion in Chinese goods. China retaliated by putting tariffs on $60 billion in U.S. goods.
USD/DXY – The Dollar Index went down to 93.39 as a low. Overnight high traded was 94.14. Immediate resistance today lies at 94.00 followed by 95.55.Immediate support can be found at 93.14 followed by 92.80. The Dollar Index topped out at 97.00.Look to buy with a likely range today of 93.50-94.50
EUR/USD – closed at 1.1775. The Euro is continuing its uptrend move. Immediate resistance today lies at 1.1800 followed by 1.1865. Immediate support can be found at 1.1668 followed by 1.1550. Look to trade a likely range today of 1.1750-1.1865.
GBP/USD – The British Pound jumped to 1.3297 as a high for yesterday. Immediate resistance for today lies at 1.3300 followed by 1.3362. Immediate support can be found at 1.3135 followed by 1.3096. Look for a likely trading range today of 1.3200-1.3300. Look to trade this range.
AUD/USD – Australian dollar continuing its uptrend move closing at 0.7290 making a high at 0.7292. Immediate support at 0.7205 with the next support level at 0.7141. Immediate resistance is at 0.7362 followed by 0.7452. Look to buy dips with a likely range today of 0.7250-0.7330.
USD/JPY – closed at 111.98. USD/JPY jumped today and reached 112.86. Immediate resistance lies at 113.17 followed by 113.90. Immediate support can be found at 111.65 followed by 110.80 then 110.55. Look to sell USD rallies with today’s likely range 113.00-112.00.
USD/ZAR – The rand firmed almost 1.5% in early trade on Thursday ahead of an interest rate decision announcement by the SA Reserve Bank at 15:00.
Analysts say while rates will likely be kept on hold, the decision could go anyway as the central bank's Monetary Policy Committee grapples with low growth, falling inflation amid high fuel prices, as well as outside pressure as emerging market peers hike rates.
The rand reached its best level in a month, strengthening to below R14.50/$ from R14.69 at the opening of trade.
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