EUR/GBP: the asset is moving in the sideways trend
Within the Asian trading session, EUR/GBP is moderately declining, testing the level of 0.8670.
Earlier the euro tried to move to the stronger position, but investors were focused on the U.S. data examination, which caused European and UK currencies to decline against the U.S. dollar. According to the publication, consumer prices rose 0.1%, while economists forecasted a negative correction within a similar value, however the annual rate declined to 8.3% from 8.5%, while the expectations were for a decline to 8.1%. The consumer price index led analysts to lower their positive assessment of the effectiveness of the leading central bank's monetary strategy, but raised the odds of a 0.75% hike in the U.S. Federal Reserve's key indicator in September.
- Resistance levels: 0.8692, 0.8720, 0.8750 and 0.8800.
- Support levels: 0.8645, 0.8616, 0.8585, 0.8560.
AUD/USD: The Australian currency has resumed its decline
The AUD/USD traded slightly higher, holding onto a local low from Sept. 8, a low posted earlier when the AUD/USD suffered its biggest drop in months in reaction to U.S. consumer price data.
Market participants will want to see the August Australian jobs market report due out on September 15. Preliminary estimates assume a significant strengthening of the number of employed by 35.0 thousand, showing a decrease of 40.9 thousand in the last reporting period. However, experts also allow for a decline in the overall employment rate. Moreover, on Thursday the RBA (Reserve Bank of Australia) will give a forecast for the consumer price level in September, which correction might be up to 6.7% from 5.9%.
- Resistance levels: 0.6750, 0.6800, 0.6853 and 0.6900.
- Support levels: 0.6700, 0.6650, 0.6600, 0.6550.
The price of bank metal is moving in the downward dynamics, leaving the local high of August 17 amid the release of macroeconomic indicators in the United States.
Thus, according to the data, the consumer inflation added 0.1% in August, against the expected decline of a similar value. Moreover, without calculating the cost of foodstuffs and energy the value showed an increase to 0.6% from 0.3%, not justifying the preliminary forecast of zero fluctuation. The annual inflation figure showed a correction to 8.3% from 8.5%, which reflected only a partial success of the U.S. Federal Reserve System, greatly questioning the prospects for the "hawks" strategy of the regulator. As of today, over 80% of experts forecast that the U.S. regulator in the meeting announced for September 21 will review the interest rate by 0.75% increasing the target to 3-3.25% per annum.
- Resistance levels: 19.50, 19.74, 20.00 and 20.48.
- Support levels: 19.00, 18.68, 18.41, 18.00.
EUR/TRY: Quotes approaching all-time highs
EUR/TRY is preparing to move above the record resistance level of 18.6000.
Turkish lira is getting stronger amid Turkish leader Erdogan's statements that the government will allocate additional $50.0 billion to build new residential real estate and business centers. The initiative of the government provides for the extension of mortgage payments period to 20 years, which will allow monthly payments not to exceed the mark of 125.0 dollars, while the minimum wage is 300.0 dollars. When examining macroeconomic statistics, economists note that Turkish industrial production slipped from 8.8% to 2.4% in July, while the retail sales index shed 0.3%, lowering the yearly rate to 2.0%.
- Resistance levels: 18.6000, 19.3000.
- Support levels: 17.9232, 17.2417.