Oil grew on economic recovery hopes; US dollar keep falling ahead of payrolls data

USD/JPY: The USD/JPY pair remains within the same narrow range today. The pair traded around 110 level in the US session yesterday, but it couldn’t keep its impulse and stay above the mentioned level. The US Initial Jobless Claims fell more than expected while new orders for manufactured goods grew in July which might be positive for US currency. On the other hand, the Japanese Yen managed to show a bullish dynamic after the Japanese government announced its long term economic growth by promoting labor productivity, green technology and digitalization. Meanwhile, Bank of Japan’s Board Member warned the pandemic may weigh on the economy longer than it was expected before. As for now, investors wait for the bank composite PMI, US Nonfarm Payroll, and Unemployment data to estimate the market sentiment.


BUY STOP 110.40/TP 111.40/SL 109.95

 

GBP/USD: GBP/USD pair struggles between the US dollar broadly weakness and the recently negative factors for the UK around high 1.3830 during Friday’s session. Cable also cheered the greenback’s fall as well as other pairs while refreshing the high of the previous day despite covid and Brexit concerns. The latest challenge is relating to the tax hike proposal from UK Prime Minister Boris Johnson. It’s also important to note that UK PM Johnson also pushed for fastening vaccination process for 16–17 years old, as well as confirmed plans for COVID revaccination process in September. Moving on, the final reading of the UK’s Services PMI for August and risk catalysts may make the cable more volatile ahead of the key US jobs report.


BUY 1.3850/TP 1.3970/SL 1.3800

 

WTI: West Texas Intermediate oil prices rose 2% yesterday, having reached almost 73.5 level and refreshed the monthly high. US inventories fall reported the prior day pushed the oil prices higher, despite OPEC decision to increase daily supply with a 400K barrel. OPEC group confirmed its plans to raise production by 0.4 million barrels, though the group will meet again next month to discuss another hike as it is going to return output to pre-pandemic levels in next year. Meanwhile, a 7 million barrel drop in US oil inventories fell to the lowest since September 2019, reported by the US Energy Information Administration. In addition, the Gulf of Mexico production and refining are still limited due to Ida hurricane.


BUY 70.00/TP 74.00/SL 68.50

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