EUR/USD, EUR/GBP and GBP/USD drop despite rising UK consumer confidence
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of Jackson Hole Fed and ECB speeches.
EUR/USD drops further still
EUR/USD's decline from its $1.1275 July peak has taken it to below the 200-day simple moving average (SMA) at $1.0805 to the March-to-August tentative uptrend line at $1.077 ahead of Jerome Powell and Christine Lagarde’s key speeches at Jackson Hole today.
Were the tentative uptrend line not to hold, the May trough at $1.0636 would be back in the frame as the greenback continues to appreciate to new 2 /12 month highs.
Minor resistance above the 200-day SMA at $1.0805 can be found at the $1.0834 July low.
EUR/GBP recovery off one-year low runs out of steam
EUR/GBP's recovery from this week’s one-year low at £0.8493 on weak Eurozone and not much stronger UK flash purchasing managers index (PMI) data for August, has taken it to the 55-day SMA at £0.8582 which capped it earlier today, though.
The cross is seen falling once more as UK consumer confidence came in better-than-expected and as investors sell the euro ahead of the European Central Bank (ECB) Christine Lagarde’s speech at Jackson Hole.
Minor support may be found around the mid-August low at £0.8524 ahead of key support at the £0.8522 to £0.8504 June and July lows.
GBP/USD drops to two-month low despite rising UK consumer confidence
GBP/USD's decline from its $1.3142 July peak is accelerating to the downside despite a marked improvement in UK consumer confidence in August when it hit -25 versus -30 in July and a forecast of -29.
The strength in the US dollar ahead of Jerome Powell’s speech at the Jackson Hole symposium today thwarts any recovery attempt by the British pound with GBP/USD dropping to two-month lows. The early June high at $1.2544 has practically been hit, a fall through which would engage the minor psychological $1.25 mark. Below it meanders the 200-day SMA at $1.2401.
Minor resistance is seen at previous support, namely between the early- and mid-August lows at $1.2617 to $1.2621. Further up sits the $1.2679 May peak.
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