GBP/USD: The Great Britain pound fell against the US dollar on Monday after a mild rise last week. Negative UK data put additional pressure on the pair. The August Markit Construction PMI fell, and it was worse than market expectations. Meanwhile, the UK reported more than 41 thousand new coronavirus cases in the last day and 45 new deaths. The country has fully vaccinated nearly 80% of the population. Today, the UK released the British Retail Consortium Like-For-Like Retail Sales and Halifax House Prices. However, these figures should not have a strong influence on the market. Investors will be waiting for further signals on the Bank of England’s future policy direction and the state of the UK economy. The local support level can be seen at 1.3820. If the price tests this level and bounces from it, it can trigger growth towards 1.3880.
EUR/JPY: The European currency was little changed against the Japanese yen on Monday, and it keeps trading sideways. The euro came under new pressure because the rising inflation may affect the upcoming meeting of the European Central Bank on Thursday. There are still discussions among the European Central Bank’s members. Some preferred to reduce the asset purchase program, while others debate over the need to maintain the stimulus. On the other hand, the Japanese Yen managed to gain some optimism that the next leadership will announce massive stimulus to support the economy. The market sentiment was also boosted after news surfaced that a Japan panel offered to let loose some COVID-19 restrictions, possibly in Autumn. Today we are expecting figures on Eurozone Gross Domestic Product that may cause some movement in the market. The local resistance level can be seen at 130.50. A breakout to the upside can trigger growth to 130.95.
DAX30: European shares rose on Monday to end near-record levels due to a rise in technology stocks, which reached their highest levels this year. A surprise rise in German factory orders pointed to improved global demand and boosted market sentiment. The German DAX rose 1%, bolstered by a 3% gain of Siemens AG. The local resistance level can be seen at 15 920. A breakout to the upside can trigger growth to 16000.