September 02, 2021
GBP/USD: Cable remained calm, having climbed a little yesterday, trading below the 1.38 level due to the broad dollar’s weakness and strong UK data. On Wednesday, house prices in the United Kingdom rose by their most in the last 15 years, after falling in July. House prices increased by 2.1% from July to August, while analysts expected a 0.2% rise. Still, investors will now focus on Jobless Claims data and Nonfarm Payrolls which is going to be published on Friday. It still has the potential to push the markets and support the taper announcement in the near future. Additionally, economists expect that jobs growth should see the Unemployment Rate fall up to a fresh post-pandemic low of 5.2%.
SELL 1.3790/TP 1.3690/SL 1.3840
NZD/USD: New Zealand dollar was showing a bullish dynamic for the last entire week, trading mostly around monthly high yesterday. Kiwi pair grows in accordance with a domestic data and broad US dollar weakness due to COVID-19 fears renew. New Zealand’s Terms of Trade Index for the second quarter jumps to a fresh high since the quarter ended in May 2017, having risen for 3.3% versus 2.5% expected. These data hint the Reserve Bank of New Zealand’s rate hike in 2021 which is probably going to push NZD/USD prices higher. Looking forward, there will no be any important macroeconomic news in Asian calendar, and that pushes the NZD traders to wait for US employment data like Nonfarm Productivity for the second quarter and weekly jobless claims for fresh impulse.
BUY 0.7075/TP 0.7160/SL 0.7040
S&P500: Us indices showed another performance day yesterday, having refreshed new all time highs, speaking about NASDAQ and the S&P 500. A low rate environment is pushing the tech sector forward as tapering expectations from the Federal Reserve are going to be postponed due to a miss in the US ADP jobs report which showed that private employers hired far fewer workers than expected in August.
Following on from a dovish speech made by the Fed’s chair, Jerome Powell, last Friday, Wall Street’s main indexes have refreshed record highs as well as S&P 500 which grew for 7 months in a row. The combination of the data and risks of Delta coronavirus spreading will be estimated by investors from the perspective if the Fed can even keep tapering its QE program in the coming months.