August 19, 2021
GBP/USD: Great Britain’s pound rose against the US dollar yesterday. UK inflation data showed a sharper slowdown than expected. British inflation fell to the Bank of England’s 2% target last month, but a slowdown was most likely momentary because the reopening of the economy after lockdown drives prices higher. Meantime, the US dollar enjoyed a period where the coronavirus concerns have supported the risk-off currencies. The US dollar may remain attractive for trades if the Covid situation in such countries where the spread had been rampant or has just starting to present itself keeps deteriorating. The local support level can be seen at 1.3700. A breakout below could take the pair towards 1.3640.
USD/CAD: The US dollar rose against the Canadian dollar on Wednesday after the last Federal Reserve meeting. Canada published inflation figures such as the Consumer Price Index which was better than market expectations, but these positive values failed to support the Canadian dollar. Meanwhile, the US housing numbers showed mixed dynamics, because a drop in US Housing Starts contrasted the positive Building Permits for July. Also, we would like to note that the Canadian dollar is pressured by falling oil prices. Today we are expecting US data on Initial Jobless Claims and the Philadelphia Fed Survey. The local support level can be seen at 1.2660. If the price tests this barrier and bounces from it, it can trigger growth towards 1.2730.
WTI: Oil prices fell for the sixth consecutive day on Wednesday. Traders keep worrying about the outlook for fuel demand due to the worldwide rising of COVID cases. And more supply reaches the market from large global producers, including the United States. The surprise growth in US gasoline inventories also fuelled concerns over slowing demand. US crude inventories fell 3.2 million barrels last week, their lowest since January 2020, the Energy Information Administration said on Wednesday. But gasoline stocks rose when they were expected to drop. The local support level can be seen at $64.00. A breakout below could take the pair towards $62.30.