Today’s market preview concisely examines the key factors influencing trading, which helps investors prepare for the day ahead.
Key Economic Indicator of the Day
UK core inflation rate YoY (July) and inflation rate YoY (July):
UK headline inflation was 2.2% in July, lower than the expected 2.3%. UK rate expectations currently show a 45% chance of a second 25 basis point interest rate cut at the September 19th BoE meeting.
US core inflation rate YoY (July) and inflation rate YoY (July):
GBP/USD is trading comfortably back above 1.2800 today, aided partly by yesterday’s weak performance of the US dollar. The pair tested the 1.2863 to 1.2896 range but didn’t break through. The market is now waiting for the US inflation data at 13:30 UK time to determine the pair’s next direction.
Market Movers for the Day
GBP/USD:
- Green lines are the Resistance Points, which means should the market prevail and move further upward, these would be the market prices it could potentially reach.
- Red lines are the Support Points, which means that should the market decline and move downwards, these would be the market prices it could potentially reach.
Gold prices trended up above 2470 US dollars:
- Spot gold regained momentum and stood above $2470 per ounce.
- Gold futures expiring in December rose 0.23% to $2,513.35 an ounce, silver future expiring in September up 0.59% to $27.950 an ounce, while palladium future expiring in September rose 1.38% to $938.03 per ounce by 12:45 GMT.
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