News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Margaret Yang, CFA, Strategist

DOW JONES, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed -0.30%, -0.09% and +0.16% respectively
  • Cyclical sectors pulled back amid rising viral concerns and falling energy prices. The DXY US Dollar index climbed to a two-week high following a strong NFP
  • Futures across the APAC markets are positioned to open mildly higher

Dow, NFP, Crude Oil, USD, Asia-Pacific at Open:

The Dow Jones Industrial Average pulled back from all-time highs on Monday as investors mulled rising Delta variant cases around the world and a possible faster pace of Fed tapering stimulus. Much stronger-than-expected July nonfarm payrolls data pointed to a resilient US labor market despite a viral resurgence, hinting that the conditions are gradually maturing for Fed officials to start a debate on a tapering schedule. The abrupt plunge in gold prices during Monday’s Asia-Pacific hours may have reflected this prospect.

WTI crude oil prices fell to a three-week low of $67.00, pulling the energy sector (-1.67%) lower. Defensive-oriented consumer staples (+0.38%) outperformed, pointing to a cautious start for APAC open. The DXY US Dollar Index extended Friday’s gains and may be testing a key level at 93.00 today, exerting downward pressure on precious metals, commodity and ASEAN currencies.

In China, millions of people have been undergoing Covid tests as travel restrictions were imposed in many cities the country attempt to fight against a new wave of viral flareups caused by the highly-contagious Delta variant. Some 125 new confirmed infections were reported on Sunday, with the majority found in the central city of Zhengzhou and the eastern city of Yangzhou. Efforts to stem the spread of the virus may hint at slower economic activity and softer energy demand in the months to come.

Gold Prices - Daily

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Asia-Pacific markets are positioned for a positive start to the day. Futures in Japan, mainland China, Australia, Hong Kong, Taiwan, Singapore, Malaysia and Thailand are in the green, whereas those in South Korea and India are slightly lower.

Hong Kong’s Hang Seng Index (HSI) climbed 0.40% on Monday, lifted by Tencent (+1.76%) and HSBC (+1.39%). Alibaba fell 2.48% after one of its managers was investigated for sexually assaulting a female employee. The stock connections registered HK$ 3.45 billion of net Southbound inflows on Monday (chart below), reflecting that more mainland buyers are returning to Hong Kong’s market for bargain hunting. Lingering regulatory risks, however, may still be at the top of investors’ mind.

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Source: Bloomberg, DailyFX

Looking back to Monday’s close, 7 out of 9 Dow Jones sectors ended lower, with 67.7% of the index’s constituents closing in the red. Energy (-1.67%), healthcare (-0.67%) and information technology (-0.57%) were among the worst performers, whereas consumer staples (+0.38%) and financials (+0.20%) registered small gains.

Dow Jones Sector Performance 10-08-2021

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Source: Bloomberg, DailyFX

Dow Jones Index Technical Analysis

The Dow Jones index breached above a key resistance level at 34,920, thus opening the door for further gains. Prices remain in an “Ascending Channel”, as highlighted on the chart below, suggesting that the overall trend remains tilted to the upside. Bearish MACD divergence suggests that upward momentum may be weakening however.

Dow Jones Index Daily Chart

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

Hang Seng Index Technical Analysis:

The Hang Seng Index entered a range bound condition after falling sharply at the end of July. The near-term trend has likely turned positive after the MACD indicator formed a bullish crossover. A successful breach above the immediate resistance level at 26,650 may signal further upsides, whereas a break below 25,750 support may result in the reverse.

Hang Seng Index – Daily Chart

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

ASX 200 Index Technical Analysis:

The ASX 200 index has breached above a key resistance level at 7,500 – the 200% Fibonacci extension. The overall trend remains bullish-biased, as suggested by the consecutive higher highs and higher lows formed over the past few months. The MACD indicator formed a bullish crossover and trended higher, suggesting that upward momentum is gaining traction.

ASX 200 Index – Daily Chart

Dow Jones Retreats amid Growth Concerns, Hang Seng Opens Higher

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES