Today, the focus is on a fivefold increase in Nintendo’s profits, a decrease in the number of applications for unemployment benefits in the United States, as well as negative rates of the Bank of England.
Calendar
12:30 UTC
Event of the month: the report on the change in the number of employees in the US Nonfarm sector for July will be released. An increase of 1 million is forecast. If the real data is lower, the USD will come under pressure.
Assets for trading: USD/CAD, USD/CHF.
14:00 UTC
Ivey Canada PMI for July will be released. An indicator of 57 points is expected. If the real data is higher, CAD will tend to rise.
Assets for trading: USD/CAD, CAD/JPY.
News
In the US, the number of initial applications for unemployment benefits has decreased. Affects USD
In Germany, the volume of production orders rose sharply. Affects EUR
The Bank of England has no plans to use negative interest rates yet. Affects GBP
Nintendo reported fivefold growth in quarterly profits. Influences Nintendo
The US President pledges $25 Billion to Support Airline. Influences Boeing
Technical Analysis
GBP/USD
The head of the Bank of England, Andrew Bailey, said that the regulator considers negative rates as one of the tools to support the economy, but there is no reason to introduce them right now. In addition, Bailey said that the country’s economy could recover towards the end of 2021, that is, a little later than previously reported.
The news led to an increase in the British currency, but the technical potential for strengthening is limited by the resistance level of 1.
Brent
A false breakout of an uptrend level may lead to a decline in Brent crude prices.
AUD/CAD
The chart of the currency pair has formed a “triple bottom” reversal pattern. Activation of buyers is possible.
AUD/CAD on this day in history
- Since 2000, Aug 7th has been a trading day 14 times.
- On 57% of those days, the asset finished trading with growth.
- The maximum strengthening range was 1%.
- The downward trend was limited to 1%.