ForexGen | Currencies Outlook

The Sterling

(GBP) bounced inline with the Euro but was unable to hold gains retreating during the US session. The Market is becoming increasingly certain that the BOE will cut rates before the year’s end and this could weigh on the Pound going forward. Overall the GBP/USD traded with a low of 1.8618 and a high of 1.8720 before closing the day at 1.8650 in the New York session.

The Australian Dollar

(AUD) gained as the commodity complex bounced lead by Oil and Gold which reclaimed the $800 level briefly before retreating with the Aussie. Attempts to rally were met with very good selling pressure especially as support for the AUD/JPY faded. Markets still see a 50/50 chance of 50 basis point cuts in September. Overall the AUD/USD traded with a low of 0.8652 and a high of 0.8748 before closing the US session at 0.8680. Looking ahead, RBA minutes from the August Meeting.

Gold

(XAU) reclaimed the $800 an ounce level briefly as Oil surged and the USD weakened. US banking concerns also supported but a rally in the Dollar during New York capped gains. Overall trading with a low of USD$790.55 and high of USD$803.65 before ending the New York session at USD$800 an ounce.