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08.07.202110:00 Forex Analysis & Reviews: Hot forecast for GBP/USD on July 8, 2021

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After such a strong movement observed on Tuesday, a rebound was quite rightly expected in the foreign exchange market. There was every reason for this because the commodity markets already showed clear signs of the beginning of a rebound from the very opening of yesterday's trading. However, after the opening of the US session, commodity markets began to decline again, and the foreign exchange market followed them. But one should not associate this with the publication of the text of the minutes of the meeting of the Federal Open Market Committee. By this time, the market again froze in place, and all the most interesting things happened before it. Moreover, the market has not learned anything new for itself.

In fact, the content of the protocol was no different from what Jerome Powell announced during his press conference. Of course, it is a little more detailed, but the essence does not change from this. It is noteworthy that the market, as a whole, positively perceived the data on open vacancies, the total number of which in the United States increased from 9,193 thousand to 9,209 thousand. So, the number of job openings seems to be growing, which, against the background of the recent increase in the unemployment rate, looks pretty good. That is, the unemployment rate may decrease in the near future. However, it was possible to achieve such a result only by revising the previous data. Previously, it was assumed that there were 9,286 thousand open vacancies in the previous month.

Number of Job Openings (United States):

Exchange Rates 08.07.2021 analysis

Today, the strengthening of the dollar may also be supported by data on applications for unemployment benefits in the United States. In particular, the number of initial requests should be reduced by 44 thousand. The number of repeated requests may be reduced by 121 thousand. And this is another confirmation that the recent increase in the unemployment rate was rather an accidental and temporary phenomenon. In general, a rebound, or even a certain correction, will have to wait for a long time.

Number of repeated applications for unemployment benefits (United States):

Exchange Rates 08.07.2021 analysis

The GBP/USD currency pair was at a standstill during the last trading day relative to the market jump in the period of June 6. The price values of 1.3770/1.3820 became the boundaries of the amplitude, where special attention was paid to the coordinate of 1.3785, which reflects the base of June 21.

The market dynamics has moved from the acceleration stage to the deceleration mode, but the coefficient of speculative operations still has a high level.

In the current location of the quote, the same stagnation is visible within the established framework, but at the same time there is a downward interest.

It can be assumed that the price's exit from the 1.3770/1.3820 boundaries will lead to an increase in the volume of short positions, but the main round of the downward move will occur after the breakdown of the 1.3730 mark, the base on July 2.

From the point of view of complex indicator analysis, it can be seen that technical instruments have a variable signal at minute and hour intervals. While the daily period indicates the superiority of sellers in the market.

Exchange Rates 08.07.2021 analysis

Przedstawiono Dean Leo,
przez eksperta analitycznego
z grupy firm InsaForex © 2007-2024
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