Forex Markets Await Jackson Hole Cues; Dollar's Position Remains Uncertain

Action Insight Daily Report 8-24-23

Forex Markets Await Jackson Hole Cues; Dollar's Position Remains Uncertain

The foreign exchange are mostly stable today, with major currency pairs and crosses staying confined within the boundaries set yesterday. Both Sterling and Euro have had a lackluster week, emerging as the weakest performers. US Dollar, while subdued, still fares better, positioned ahead of Canadian Dollar as the third least impressive for the week.

In an unexpected turn, Australian Dollar has taken the lead as this week's strongest contender, with New Zealand Dollar following closely. Yen, meanwhile, is mixed amidst these shifts.

Today's economic docket is relatively thin, spotlighting only US jobless claims and durable goods orders. However, neither is anticipated to induce significant market ripples. Instead, all eyes are glued to the unfolding developments at the Jackson Hole Symposium.

On the technical front, the Dollar's momentary surge from yesterday lost momentum just as swiftly. Yet, the greenback hasn't witnessed any pressing sell-off. As long as 1.0929 minor resistance in EUR/USD and 1.2817 in GBP/USD hold, further rally is expected in the greenback. Break of 1.0861 and 1.2613 temporary lows will suggest Dollar buyers are back in.

In Asia, Nikkei closed up 0.87%. Hong Kong HSI is up 1.87%. China Shanghai SSE is up 0.18%. Singapore Strait Times is up 0.28%. Japan 10-year JGB yield is down -0.0158 at 0.662. Overnight, DOW rose 0.54%. S&P 500 rose 1.10%. NASDAQ rose 1.59%. 10-year yield dropped -0.13 to 4.198.

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2638; (P) 1.2702; (R1) 1.2788; More...

GBP/USD is still bounded in established sideway pattern from 1.2618, despite yesterday's volatility. On the downside, firm break of 1.2613 and sustained trading below 1.2678 resistance turned support will argue that it's already in a larger correction. Deeper decline would then be seen to 1.2306 support next. Nevertheless, break of 1.2817 minor resistance will indicate that the pull back from 1.3141 has completed, and turn bias back to the upside for stronger rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
12:30 USD Initial Jobless Claims (Aug 18) 241K 239K
12:30 USD Durable Goods Orders Jul -4.00% 4.60%
12:30 USD Durable Goods Orders ex Transportation Jul 0.20% 0.50%
14:30 USD Natural Gas Storage 35B