Forecasts & Analysis

The US dollar caught a boost from a stronger than expected jobs report on Friday which led to a push lower in GBP/USD.

The Commitments of Traders reports highlight speculators positions and changes made during the week to August 4 in FX, bonds and stocks. Appetite for risk during this period remained strong with dollar weakness and rising negative real yields feeding a rise in prices across global asset markets.

On Monday, August 10th, the major currency pair is trying to strengthen but markets aren’t too active so far.

EUR/USD remains under slight pressure in the early day after a sharp fall on Friday on the back of better than expected US jobs figures.

Qualcomm Inc is lobbying the United States government to roll back restrictions on the sale of advance components to Huawei Technologies Co. after the Commerce Department blacklisted the Chinese telecom giant, according to The Wall Street Journal report.

On Friday, our computer screens displayed better than expected data from the American job market. That helped the US Dollar, so we will focus on this instrument.

President Trump’s executive orders to ban the use of WeChat and TikTok by mid-September did little to curb investor’s appetite to risk.

GBP/USD did not manage to settle above the nearest resistance at 1.3110 and continues to trade near 1.3050.

We expect the RBNZ to keep the overall stance of monetary policy unchanged. However, it will also have to revise up its near-term economic forecasts.

On Saturday, August 8, 2020, President Trump signed a new Executive Order to provide additional relief from the coronavirus.