EUR/GBP, GBP/USD and USD/JPY trade in low volatility ranges
Outlook on EUR/GBP, GBP/USD and USD/JPY as traders look ahead to Thursday’s Jackson Hole symposium.
EUR/GBP continues to hover above support
Following last week’s sell-off, EUR/GBP continues to stabilize above its £0.8522 to £0.8504 June and July lows, having held there as UK retail sales dropped by a worse-than-expected 1.2% month-on-month (MoM) in July.
Thursday and Friday’s highs at £0.8557 need to be overcome, for a rise back towards the 55-day simple moving average (SMA) at £0.8585 to unfold.
GBP/USD remains within its sideways trading range
Further GBP/USD sideways trading below the 55-day SMA at $1.2766 seems to be in store for Monday as the economic calendar remains empty and traders look towards Thursday’s Jackson Hole symposium for further guidance regarding the US dollar.
Only a rise and daily chart close above the current August high at $1.2819 could technically indicate that a bullish reversal is taking shape. Solid support remains to be seen between the early-and mid-August lows at $1.2621 to $1.2617.
USD/JPY remains below its nine-month high as inflation back up at 42-year high
USD/JPY advance to last week’s nine-month high at ¥146.56 paused as Japan’s inflation rate hit a 42-year high by staying unchanged at 3.3% in July 2023.
Another drop to the June peak at ¥145.07 looks probable but around this level the currency pair is likely to stabilize on Monday, however. Further minor potential support can be seen at the early-August ¥143.89 high. Resistance remains to be seen at last Thursday’s ¥146.56 peak.
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