July 27, 2021
GBP/USD: The Great Britain pound fell against the US dollar on Friday. It happened after news that Britain’s economic rebound is slowing sharply in July when a spike in COVID-19 cases forced hundreds of thousands of workers to self-isolate under government rules. The UK Markit Manufacturing composite PMI and the Markit Services PMI dropped in July, and the data was worse than market expectations. Meanwhile, the number of new coronavirus cases in the UK seems to be declining. The country reported fewer cases for the second consecutive day on Friday, while on average, cases were down about 30% from the previous week. As for the UK macroeconomic statistics, it will be scarce this week. The local resistance level can be seen at 1.3790. If the pair reaches this level and rebounds from it, it can trigger a downside movement towards 1.3690.
USD/CAD: The US dollar was little changed against the Canadian dollar on Friday but finished a volatile week higher. Investor sentiment improved, and a preliminary estimate showed Canadian retail sales rebounding in June. Canadian retail sales dropped in May from April, but these values were better than expectations. This week also can be volatile for this pair due to the release of important statistics from both the North American economies. The US Federal Reserve monetary policy decision is likely to stand out among other relevant macroeconomic data. The local support level can be seen at 1.2540. A breakout below could take the pair towards 1.2460.
BRENT: The oil prices increased slightly on Friday after a strong selloff at the beginning of the week. Investors estimated the outlook for demand amid a Covid-19 resurgence. There are signs that demand for fuels such as gasoline has increased as vaccination programs are rolled out, although the fast-spreading delta variant has raised concerns about the short-term outlook. Tight restrictions have been renewed, including curfews in some places. The latest Covid-19 flash coincided with an OPEC+ agreement to add more barrels from August, which put pressure on oil, interrupting a price rally. However, experts expect further growth in oil prices for the rest of this year.