The US dollar index (DXY) is trading at 102.10. Traders continue to analyze Friday’s report on the US labor market, according to which the US economy created only 187K new jobs in July against the forecast of 200K, while the unemployment rate fell to a new record low of 3.5% in July. Investors were disappointed by the continued uncertainty in the labor market, which could be the reason for the end of the current cycle of monetary tightening in the US. Thus, the Fed is likely to maintain its interest rate at the current level until the end of this year. After that, it could start cutting rates. On Thursday, US inflation data will be released, which will help clarify the outlook for US monetary policy. Until then, the decline of the dollar may continue.
SELL STOP 102.00/TP 101.40/SL 102.20
GBP/USD
The GBP/USD pair is consolidating at 1.2750. Yesterday June’s data on the Halifax House Price Index were released. Average house price fell by -0.3% in July. The housing market is under pressure from high interest rates and inflation, and experts fear that the negative trend will continue at least until the end of this year. Despite this, the report did not cause a decline in the British currency, which reached its local maximum yesterday. Traders continue to buy the pound amid expectations of further rate hikes in England. Considering this, the pound’s growth may continue.
BUY STOP 1.2780/TP 1.2880/SL 1.2750
BRENT
Brent oil is holding near $85. Earlier, Saudi Arabia announced the extension of its voluntary output cut of 1 million barrels a day through the end of September, adding that the cut could be extended and deepened if needed. These statements of the world’s largest oil exporter had a positive impact on prices. Today, traders expect a report on oil reserves from the American Petroleum Institute. Last week, oil inventories fell by more than 15 million barrels. If the situation repeats, oil prices will receive additional support.
BUY STOP 85.50/TP 87.50/SL 84.80
