Quiet Start to the Day

A generally quiet start of the day with the various pairs continuing their trends from yesterday. The yen continues to weaken while the USD related pairs like EUR/USD and GBP/USD are generally weak but within tight ranges. Today is the last day of the month so we should see some monthly end flows towards the fag end of the day during the London and US trading sessions.

USD/JPY seems to be aiming for 104 at least and could extend higher in due course of time. We stay with our call for 1.29 for GBP/USD considering the strengthening USD trend after rate hikes bets increase. Gold has hit its first support at 1313 and it will be interesting to see if this support breaks or holds. Currently, after Janet Yellen speech last week, gold price prediction is for a further decline.

With the upcoming economic data during the new month, we should see more volatility as the data will give hints on the strength of the US economy and this will in turn give hints on whether there would be a rate hike in September or not. Should be an interesting week !

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