USD/JPY: The "American" keeps losing ground
The American currency is moving in a slight decline, having made an unsuccessful attempt to develop growth. The instrument USD/JPY continues to remain at a record high, updated a week earlier, and the U.S. currency is waiting for the next stimulus.
The Japanese regulator continues to take a wait-and-see approach, refraining from tightening monetary parameters that runs counter to the world's emerging market central banks. Thus, the ECB had announced the previous day about its interest rate hike by 0.75%, and the U.S. Federal Reserve System confirmed its intention to raise the same indicator for the third time in a row, while the Japanese Central Bank is keeping the negative rate, wanting to get rid of deflationary phenomena in the economy. Investors are concerned about the weakening yen rate unilaterally. Today's release in Japan is not likely to provide support for the yen. However, manufacturing activity for Q3 strengthened by 1.7%, after previously showing a decline of 9.9% quarter-on-quarter.
- Resistance levels: 143.48, 145.00, 146.00, 147.00.
- Support levels: 141.50, 140.78, 139.67, 138.50.
USD/CAD: trades within multidirectional dynamics
The Asian session demonstrates the attempt of USD/CAD pair to hold below the level of 1.3000. Earlier the asset was under steady pressure of the "bearish" impulse received on September 7, but the "bulls" sentiment was able to partially restore positions by the end of trading, allowing to close the session on Monday at the local minimum of August 26.
Even weak statistics on the employment market, released the previous day, could not prevent development of positive dynamics of the Canadian currency, which showed a decline of 39,7 thousand working people, outstripping negative value for the previous period of -30,6 thousand, while the market expectations for growth by 15,0 thousand. August indicator of unemployment strengthened to 5.4% against 4.9% earlier, beating forecasted growth to 5.0%, and average pay per hour increased to 5.58% from 5.44%. Moreover, the manufacturing sector showed significant strengthening, rising to 83.8% from 81.9% for Q2, beating market forecasts for growth of 82.5%.
- Resistance levels: 1.3000, 1.3050, 1.3100, 1.3150.
- Support levels: 1.2950, 1.2900, 1.2850, 1.2800.
Cryptocurrency Market Overview
The cryptocurrency ETH is trading in moderate growth, testing the 1720.06 mark.
Last week was marked by the activation of the Bellatrix fork, which is a key milestone to move the core network to use the new PoS (Proof-of-Stake) consensus algorithm, allowing developers to confirm assumptions that Ethereum 2.0 users were able to switch to the updated software and prepare for infrastructure modifications. However, there is a high probability of the risk of encountering chain incompatibilities and losing the ability to conduct activity in the updated space if the updates are ignored. In the current environment, crypto investors are waiting for the launch of the final version of Paris, the launch of which will reduce the speed of ETH issuance to 1.6 thousand coins compared to 13.0 thousand in the present one, and the entire segment of electronic assets will receive a powerful signal support for the global dynamics of "bulls". Thus, the former head of BitMEX Arthur Hayes already made a statement, according to which ETH can reach the level of 3000.00, which is possible due to the developing DeFi in the market.
- Resistance levels: 1900.00, 2208.00.
- Support levels: 1518.00, 1242.00.
The precious metal is showing positive momentum, testing 1727.0.
Contrary to the proximity of the asset's quotations to the annual low, the level of demand for physical gold purchases and contracts from investors continues to grow. According to the Australian Mint, August alone saw a combined 84,900 ounces sold in coins and bars, which was 57.4% higher than a year ago, and 7.2% higher than in July. As reported by the U.S. Mint, annual gold sales totaled 857.0 thousand ounces in coins, surpassing last year's mark by 1.2%, while sales within Canada for Q2 were 31.9 million Canadian coin dollars compared to 24.8 million Canadian units last year.
- Resistance levels: 1734.0, 1780.0.
- Support levels: 1696.0, 1650.0.