Late July and early August are packed with significant macroeconomic events. This week has already seen rate decisions from the Bank of Japan and the Federal Reserve, with the Bank of England meeting today and the U.S. monthly labour market report due tomorrow. As the U.S. regulator left the rate unchanged at 5.50% yesterday, market participants will now focus on incoming macroeconomic data for further clues on the Fed’s future policy.
GBP/USD
Ahead of today’s Bank of England meeting, the GBP/USD pair remains firmly above the significant support level of 1.2820. The price has tested the 1.2820-1.2800 range three times in recent sessions, so far without breaking through.
Technical analysis of the GBP/USD pair indicates potential for continued growth towards June highs if it holds above 1.2900. A break below 1.2800 could lead to a downward correction towards the crucial range of 1.2700-1.2600.
Key events that could influence GBP/USD pricing:
- Today at 14:00 (GMT+3): Bank of England’s interest rate decision (experts predict a 0.25% rate cut).
- Today at 15:30 (GMT+3): Release of the U.S. initial jobless claims.
- Today at 16:45 (GMT+3): Release of the U.S. Manufacturing PMI for July.
USD/JPY
The Bank of Japan recently surprised the market by raising its base rate to 0.25%, deviating from its long-standing ultra-low rate policy. The market was unprepared for this development, and the USD/JPY pair broke several key supports throughout the day, now trading below 150.00.
Tomorrow’s employment report could lead to the following scenarios:
- Positive NonFarm Payrolls could push the price up to 151.90-150.80.
- A break below 148.40 could intensify downward pressure on the pair, potentially leading to a test of the 147.00-146.50 range.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
