British Pound pressured lower as calls for a UK rate cut grow
The British pound came under pressure against the US dollar and the Japanese yen this week over Brexit fears and calls for a rate cut from two key MPC members within the Bank of England. The upcoming UK General Election caused traders to scale back bullish bets towards the British pound, as the latest election polls showed the possibility of a hung-parliament increasing. The Bank of England policy meeting also caused sterling to turn lower, as two key MPC voting dissented to the latest decision to keep interest rate unchanged, as they called for an interest rate cut.
The GBPUSD pair is only bearish while trading below the 1.2900 level, key support is found at the 1.2740 and 1.2710 levels.
If the GBPUSD pair trades above the 1.2900 level, buyers may test towards the 1.2960 and 1.3000 resistance levels.
Bitcoin suffered another weak of uncertainty on the cryptocurrency market, as the number one cryptocurrency traded in an increasingly narrow price range. The BTCUSD pair continued to trade above its 200-day moving average but failed to move back above the psychological $10,000 level. Litecoin had a more impressive trading week, as the LTCUSD pair posted solid gains above the $60.00 level. Ethereum attempted to test the top of its trading range but failed to secure buying interest above the $190.00 level.
- The BTCUSD pair is only bearish while trading below the $8,800 level, key support is found at the $7,500 and $7,100 levels.
- If the BTCUSD pair trades above the $8,800 level, buyers may test towards the $9,600 and $10,000 resistance levels.
Trade tensions between the United States and China resumed this week, following reports that the signing of the first phase of the much-anticipated trade deal could be delayed until December. The reason behind the delay was due to both sides not being able to agree on a venue to sign the deal, after the upcoming meeting in Chile was canceled due to riots. Trade tensions improved later in the week, as Chinese officials reportedly asked for a meeting to try to agree on a way forward to end trade tariffs on Chinese imports and exports into America.
- The USDJPY pair is only bearish while trading below the 108.60 level, key support is found at the 108.20 and 107.90 levels.
- If the USDJPY pair trades above the 108.60 level, buyers may test towards the 109.60 and 110.00 resistance levels.
The Reserve Bank of Australia kept interest rates unchanged at 0.75 percent this week, as the central bank broke the recent cycle of dovish rate reductions. The Australian dollar firmed across the board after the central bank appeared more upbeat in its policy statement than precious months. The RBA did, however, note that any worsening of the unemployment or inflation situation could force them to cut interest rates in December. The Australian dollar moved above the 0.6900 level against the US dollar, as traders scaled-back bearish bets towards the AUDUSD pair.
- The AUDUSD pair is only bullish while trading above the 0.6840 level, key resistance is found at the 0.6960 and 0.7000 levels.
- If the AUDUSD pair trades below the 0.6840 level, key support is located at the 0.6810 and 0.6760 levels.