The dollar index is trading near 102.30. Pressure on the US dollar is exerted by Moody’s downgrade of ten US banks. This decision was made on the basis of the impact of high interest rates, declining deposits and falling profits. In addition, the revision of the rating confirmed the instability of the American financial system. Today traders will be closely watching US inflation data. The decline in the core consumer price index may finally convince the Fed to end the current tightening cycle. If expectations are confirmed, the dollar risks ending the week with a significant decline.
SELL STOP 102.20/TP 101.00/SL 102.60
GBP/USD
The British pound is holding near 1.2700. In the absence of significant economic releases, the currency is driven by external factors. It is worth noting a quarterly report by the National Institute for Economic and Social Research (NIESR), which suggested that the UK will soon enter a five-year period of weak economic growth. Most likely, gross domestic product (GDP) will still rise to 2020 levels in the third quarter of 2024, but not higher. Today, the pound may be supported by inflation data in the US, which is likely to cause the dollar to decline.
BUY STOP 1.2750/TP 1.2900/SL 1.2700
BRENT
Brent oil continues to update multi-month highs and is trading near $87. Prices are supported by the possibility of reduced supply in the market due to production cuts by OPEC+ countries, as well as the extension of Saudi Arabia’s output cut of 1 million barrels per day through the end of September. Yesterday, the country’s authorities supported OPEC’s plans to stabilize the market. Buyers are also supported by hopes for a more active recovery of the Chinese economy after an increase in the consumer price index, as well as expectations of a further decrease in oil inventories in the United States. If market sentiment does not change, Brent could hit $90.
BUY STOP 88.00/TP 90.00/SL 87.00