4 Aug: Gbp lower on dovish BOE outlook. US jobs today’s focus. Australian Retail Sales and MP Statement coming up.

By | August 4, 2017

 

The main mover on Thursday was Sterling, which fell sharply after the BoE left monetary policy unchanged at 0.25% , as widely expected, and the asset purchase target at GBP 435 bio. The interest rate decision came with the MPC voting by 6-2 to leave rates on hold, also as generally expected. The dovish forward outlook is what traders focused on though, with future projections now suggesting economic growth to be at 1.7% in 2017 and 1.6% in 2018, both revised down from prior projections of 1.9% and 1.7% respectively, while 2019 growth forecast was held unchanged at 1.8%. Elsewhere the dollar was mixed, with Yen strength returning, while the other majors were choppy but without direction. The dollar remained under some pressure after the ISM showed that its non-manufacturing index fell to 53.9 last month from 57.4 in June. Stocks and commodities were rangebound and are trading at close to previous levels.

Friday will kick off a busy session with the Australian Retail Sales (June; exp +0.2%mm) and the Monetary Policy Statement. That aside, Asia will be quiet, as will Europe with just the German Factory Orders to focus on ahead of the main game of the day, the US employment data. The NFP is slated to come in at +183K, with the headline rate dropping to 4.3%.  Watch the Average Hourly Earnings, which are expected to rise by 0.3% and will be an important factor in overall makeup of the data, as will the revision of the previous month’s figures. have a good w/e.

The levels in this table are a guide only. For more in depth analysis please go the “Articles” tab at the top of the page and scroll down.

CURRENCIES
EURUSD: 1.1870
Res  1.1890  1.1910  1.1950
Sup  1.1850  1.1830  1.1785
USDJPY: 109.95
Res  110.20  110.45  110.80
Sup  109.85  109.65  109.50
GBPUSD: 1.3135
Res  1.3180  1.3220  1.3270
Sup  1.3110  1.3060  1.3005
USDCHF: 0.9681
Res  0.9700  0.9725  0.9750
Sup  0.9660  0.9630  0.9595
AUDUSD: 0.7949
Res  0.7960  0.7975  0.7995
Sup  0.7935  0.7915  0.7890
NZDUSD: 0.7435
Res  0.7450  0.7465  0.7475
Sup  0.7425  0.7405  0.7390
INDICES / COMMODITIES
S&P: 2470
Res  2475  2480  2490
Sup  2465  2460  2455
DJI: 21970
Res  21990  22050  22100
Sup  21880  21810  21745
ASX SPI: 5666
Res  5680  5700  5720
Sup  5655  5640  5630
XAUUSD: 1268
Res  1275  1280  1285
Sup  1260  1265  1255
XAGUSD: 16.62
Res  16.70  16.80  16.90
Sup  16.55  16.45  16.35
WTI: 48.90
Res  49.40  49.95  50.45
Sup  48.75  48.30  47.70