With the US dollar strong and the euro down due to concerns about a recession in the euro area, the GBP/USD currency pair declined.
Possible technical scenarios:
As we can see on the EUR/USD pair’s daily chart, the support of the sideways range between 0.0808 and 1.0958 has been broken out while the pair has reached the next level to the south at 1.0707, marked with dotted lines. If it ends up being broken out, the decline will continue towards the target of 1.0592. Unless something changes, the trades will continue in the 1.0707 - 0.0808 corridor.
Fundamental drivers of volatility:
The second-quarter euro area GDP figures are scheduled to be released this Thursday at 9:00 a.m. (GMT). Forecasts put yearly growth at 0.6%, well below the 1.1% seen in recent years. GDP is forecast to grow by 0.3% in the coming quarter, up from the previous period's flat performance.
Weekly data on US initial jobless claims will also be released on Thursdays at 12:30 p.m. (GMT). The dollar's volatility may be affected if actual values diverge from projections. The anticipated number of claims is 235,000, up from the previous week's projection of 228,000.
Intraday technical picture:
As can be seen on the 4H chart of the EUR/USD chart, there is a price reversal to the upside in the flat, which creates ample room for the pair to travel to its upper boundary.
Due to the strengthening of the US dollar and the absence of volatility drivers originating from the UK, the GBP/USD pair continues to be under pressure.
Possible technical scenarios:
As evidenced by the daily chart, the GBP/USD quotes have consolidated below 1.2601. The nearest support is at 1.2525 marked with dotted lines. Its breakout and consolidation above it will pave the way southward to the target of 1.2410.
Fundamental drivers of volatility:
This week, the UK's news landscape has been lackluster, placing the GBP/USD pair's movements at the mercy of the US currency's volatility.
12:30 p.m. (GMT), which may cause a modest uptick in volatility in the US dollar. It is predicted to display 235 thousand claims, up from 228 thousand previously.
Intraday technical picture:
12:30 p.m. (GMT), which may cause a modest uptick in volatility in the US dollar. It is predicted to display 235 thousand claims, up from 228 thousand previously.
This week, the AUD/USD pair continued to demonstrate sideways dynamics. While Wednesday's robust GDP report from Australia bolstered the US dollar, Tuesday's decision by the Reserve Bank of Australia to leave its main interest rate unchanged for a third straight meeting depressed the local currency.
Possible technical scenarios:
Judging by the look of things on the daily chart, the AUD/USD pair has created a local sideways range between 0.6364 and 0.6537 marked with green dotted lines. The upward bounce from its support will let the quotes recover. If 0.6364 fails to hold with the price consolidating below it, 0.6255 will serve as the next target to the south.
Fundamental drivers of volatility:
The Australian currency is currently trading on speculation that the Reserve Bank of Australia has completed its cycle of interest rate hikes. Philip Lowe, the current governor of the RBA, will give his farewell address on Thursday at 3:10 AM (GMT).
On Thursday, the US dollar may move in response to released figures of the Initial Jobless Claims. If the US labor market is cooling as a result of weaker-than-expected data, the Federal Reserve is unlikely to hike interest rates in September.
The number of claims is projected to rise to 235,000, from the previous week's 228,000.
Intraday technical picture:
As we can see on the 4H chart, with upward bounces and false breakouts, the AUD/USD pair has confirmed the presence of a local support level at 0.6364. This sets the stage for a recovery to the nearest resistance at 0.6537 in case of positive fundamental background conditions.
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