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The pound has continued to underperform amidst more risk-averse trading conditions. It has resulted in EUR/GBP rising back towards the 0.9000-level. Cable could gradually return to the 1.3100 region in the next week. EUR/USD is showing some signs of recovery following five consecutive daily pullbacks and looks to regain upside momentum above 1.1800. On the flip side, interim support emerges at 1.1750. The dollar index was up 0.4% at 93.062. In other markets, DAX futures contract in Germany traded 0.2% higher, CAC 40 futures in France climbed 0.3%, while the FTSE 100 futures contract in the U.K. rose 0.4%. European stock markets are seen opening higher Tuesday, with expectation growing ahead of Thursday’s policy meeting of the European Central Bank. However, investors will be keeping a wary eye on the U.S. tech sector as Wall Street returns from holiday. U.S. crude futures traded 1.7% lower at $39.09 a barrel, while the international benchmark Brent contract fell 0.1% to $42.00. Gold futures rose 0.3% to $1,940.30/oz. 

GBP/USD faces a mixed outlook, a break of the low at 1.3176 appears unlikely. Resistance is at 1.3290 but the stronger level is at 1.3330. EUR/USD extends its overnight range play below mid-1.1800 into the European session. Analysts are focused on the four-month uptrend at 1.1732 as a loss of this level will introduce scope for a slide towards the 55-day ma at 1.1620. Dollar Index was up 0.3% at 92.957. Trade is likely to be thinned due to the U.S. Labour Day holiday. In other markets, DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France climbed 0.6%, while the FTSE 100 futures contract in the U.K. rose 0.4%. Oil prices dropped Monday, hitting their lowest levels since July, after Saudi Arabia, the world’s top oil exporter, cut its October official selling price for the Arab Light crude it sells to Asia by the biggest margin since May. The market remains oversupplied despite the efforts of the top producers to rein in production as demand still remains curtailed by the impact of the coronavirus pandemic. U.S. crude futures traded 1.8% lower at $39.04 a barrel, while the international benchmark Brent contract fell 1.6% to $42.00. Gold futures rose 0.1% to $1,935.80/oz. 

GBP/USD drops to 1.3328, down 0.17% on a day, while heading into the London open on Thursday. In doing so, the Cable extends the previous day’s losses, piled mainly due to the downside comments from the BOE members, Brexit pessimism and the broad US dollar recovery.  EUR/USD is down for the third consecutive session on Thursday, coming under renewed and strong selling pressure in response to the pick-up in the demand for the greenback and profit taking in the riskier assets. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.2% at 93.058, moving around 1% above the 28-month low it hit against a basket of currencies on Tuesday, and threatening its first back-to-back daily gains since June.

GBP/USD drops to 1.3328, down 0.17% on a day, while heading into the London open on Thursday. In doing so, the Cable extends the previous day’s losses, piled mainly due to the downside comments from the BOE members, Brexit pessimism and the broad US dollar recovery.  EUR/USD is down for the third consecutive session on Thursday, coming under renewed and strong selling pressure in response to the pick-up in the demand for the greenback and profit taking in the riskier assets. Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.2% at 93.058, moving around 1% above the 28-month low it hit against a basket of currencies on Tuesday, and threatening its first back-to-back daily gains since June.

GBP/USD: Keeps losses from yearly top below 1.3400, BOE’s Bailey eyed. EUR/USD: Ingredients are in place for a resumption of the rally. Dollar buoyed by upbeat U.S. economic data.

GBP/USD clocks in fresh 2020 high above 1.3400, eyes UK/US PMIs, Brexit talks. EUR/USD is trading closer to 1.20, a two-year high. In the long-term, a close above 1.2015 would target 1.2630 the 200-month MA. Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.3% at 91.860, having earlier reached a two-year low of 91.773.

GBP/USD defies the previous day’s pullback from yearly high of 1.3284, stays bid near intraday top. Brexit woes, surge in virus cases at home mostly ignored as US dollar trims Thursday’s gains. BOE’s Bailey to be the second key central banker at Jackson Hole after Fed’s Powell played well. EUR/USD is still expected to navigate within the 1.1740-1.1930 range for the time being. Dollar Index, which tracks the greenback against a basket of six other currencies, was down 0.4% at 92.653.

GBP/USD extends the Asian consolidative mode into the European session  on Thursday, having witnessed a sharp rise to 1.3220 levels in the US  last session. EUR/USD is posting modest gains in the 1.1840 region. US  Initial Claims, flash Q2 GDP figures next of note in the docket. The  dollar edged lower in early European trade Thursday, with investors  looking to Federal Reserve Chairman Jerome Powell for guidance as to how  the central bank might alter its policy framework to help the U.S.  recovery. The dollar index was down 0.1% at 92.942.

An upside break of 1.3200 for GBP/USD will challenge the monthly high,  also the yearly top, near 1.3270 and December 31, 2020 peak surrounding  1.3285. The buying interest around the single currency is weakening on Wednesday  and dragging EUR/USD lower. The pair is currently trading at 1.1818,  representing a 0.125 decline on the day, having clocked a high of 1.1844  on Tuesday. The dollar nursed losses against most currencies on Wednesday as traders  braced for U.S. data expected to show a slowdown in durable goods  orders and a key speech by Federal Reserve Chairman Jerome Powell.

The GBP/USD pair lost more than 100 pips on Friday and staged a rebound  at the start of the week. However, the pair lost its momentum after  climbing to 1.3150 area and erased all of its daily gains. As of  writing, the pair was down 0.15% on a daily basis at 1.3068.  The EUR/USD pair posted weekly losses for the first time since mid-June  last week but staged a rebound during the first half of the day on  Monday. However, the pair met resistance near 1.1850 and erased its  daily gains. As of writing, EUR/USD was virtually unchanged on the day  at 1.1798.   US Dollar Index (DXY) to drop below 93.00 during the first half of the  day and helped GBP/USD edge higher. During the American trading hours,  rising US Treasury bond yields helped the USD gather strength and lifted  the DXY to a daily high of 93.30. At the moment, the DXY is up 0.06% on  the day at 93.26 and the 10-year US T-bond yield is up more than 2%.