GBP/USD: Pound is near a record low
The British currency ended the trading week with a weak downtrend, being at a record low. GBP/USD reached 1.1230 at the time of writing within the descending trend due to the US Federal Reserve's decision to raise the interest rate by 75 basis points. After the correction the index was strengthened to the range of 3.00-3.25%. Following economists' expectations, by the end of 2022 the value may rise to 4.40% against preliminary estimates of 4.25%, and by the end of 2023 to 4.60% against forecasted 4.50%. Subsequent stages of monetary tightening will increase pressure on economic sectors and slow national GDP growth to 0.2% by the end of this year and to 1.2% by next year.
- Resistance levels: 1.1300, 1.1349, 1.1404, 1.1478.
- Support levels: 1.1210, 1.1140, 1.1060, 1.1000.
USD/CHF: The US dollar is strengthening
In the APAC trading session, the USD/CHF is approaching resistance at 0.9800.
Pressure on the growing U.S. currency was put by the outcome of the NBS (Swiss National Bank) meeting. According to preliminary estimates, the regulator announced an increase in the key indicator by 0.75%, which strengthened the target value to 0.50% from -0.25%, where the indicator has remained without correction since 2014. Economists note that the NBSH was the latest to embrace a marathon of monetary tightening among eurozone central banks because of the onslaught of record global inflation. As follows from the accompanying statements, the regulator reserves the right to raise the interest rate systematically in the face of rising inflation.
- Resistance levels: 0.9807, 0.9868, 0.9930, 1.0000.
- Support levels: 0.9762, 0.9700, 0.9650, 0.9600.
USD/JPY: The Japanese currency has gained ground
Earlier USD/JPY had fallen significantly and at the beginning of the session managed to renew a new record high, getting close to the level of 146.00.
Positions of the "Japanese" showed quite a significant strengthening due to the interventions of the Japanese regulator. Such a decision had not been made since 1998, however the agency had expressed fears of a sharp rupture of the yen against the US dollar several times before. However, after a two-day meeting the regulator's officials decided to leave the key figures at negative -0.1%. Moreover, the Central Bank of Japan said they do not expect a correction in value; instead they are going to maintain a wait-and-see attitude in the hope that global inflation will soon run out of steam.
- Resistance levels: 142.54, 144.00, 145.00 and 146.00.
- Support levels: 141.50, 140.78, 139.67, 138.50.
NZD/USD: The New Zealand economy remains under pressure
The stabilization of the U.S. currency has caused the NZD/USD pair to drop to 0.5826, near the yearly low of 0.5800.
The central factor weighing on the currency pair was the trade deficit in the New Zealand economy, the trade balance for August was -12.280 billion dollars against the previous figure of -11.970 billion dollars, having lost $2.447 billion on the month. Also a key driver is denoted by a further increase in the price of imported goods, which has already reached $7.93 billion in August against $7.76 billion the day before. Export volumes slumped to $5.48 billion from $6.35 billion in the previous period. Leading the price increase was imported fuel, strengthening by $462 million, or 79%.
- Support levels: 0.5800 and 0.5650.
- Resistance levels: 0.5900, 0.6030.
If you are interested in NZDUSD analytics, we recommend you to visit the analytics page, where you can find the latest analytics on Forex from top traders from all over the world. These analytics will be useful both for beginners and professional traders. The Forex signals service makes it much easier for beginners to make their first steps in trading on the financial markets. The latest NZD/USD forecasts and signals contain support and resistance levels, as well as stop-loss levels.