USD/CAD trades

The Canadian dollar has posted small gains on Thursday, as USD/CAD trades at 1.3050. On the release front, Canada will release the New Housing Price Index, with the markets braced for a weak gain of 0.2%. Today’s key event is US Unemployment Claims, with the indicator expected to edge higher to 272 thousand. On Friday the US will release CPI and Retail Sales reports, as well as the UoM Consumer Sentiment report. USD/CAD ratio is showing long positions with a strong majority (58%), indicative of trader bias towards USD/CAD reversing directions and moving to lower levels.

USD/CAD has shown limited movement in the Asian and European sessions

 1.2990 is providing support

 1.3081 was under strong pressure in resistance earlier and is a weak line. It could see further action in the North American session

Further levels in both directions:

• Below: 1.2990, 1.2900 and 1.2780
• Above: 1.3081, 1.3219 and 1.3353
• Current range: 1.2990 to 1.3081

GBP/USD ratio

GBP/USD ratio is showing little movement on Wednesday. Long positions command a majority (57%), indicative of trader bias towards GBP/USD continuing to move to higher ground.The British pound has posted considerable gains on Wednesday. GBP/USD is currently trading slightly below the 1.31 level. On the release front, NIESR GDP Estimate dipped to 0.3%. Later in the day, the UK will release RICS House Balance, which provides a snapshot of the level of activity in the housing sector. Over in the US, today’s highlight is JOLTS Job Openings. This important employment indicator is expected to edge higher to 5.52 million. On Thursday, the US will release Unemployment Claims.

USD/JPY ratio is showing gains in short positions on Tuesday

USD/JPY ratio is showing gains in short positions on Tuesday. Currently, long positions have a strong majority (66%), indicative of trader bias towards USD/JPY breaking out and moving to higher ground.•USD/JPY has shown limited movement in the Asian and European sessions. The pair has posted slight losses in the North American session
•102.36 was tested earlier in resistance and is a weak line
•101.20 is providing support
•Current range: 101.20 to 102.36
The Japanese yen continues to have a quiet week and has posted small losses in the Tuesday session. In the North American session, USD/JPY is currently trading at the 102 line. On the release front, Japanese Preliminary Machine Tool Orders posted another sharp decline. Later in the day, Japan releases the Producer Price Index, which measures inflation in the manufacturing sector. The markets are braced for a sharp decline of 4.0%. In the US, there are no major events on the schedule. Preliminary Unit Labor Costs declined 0.5%, while Preliminary Nonfarm Productivity posted a gain of 2.0%.

Gold prices fell for the second session in a row Monday

Gold prices fell for the second session in a row Monday, as auspicious U.S. employment data released Friday curbed haven demand.
Gold for December delivery was recently down 0.3% at $1,340.80 a troy ounce on the Comex division of the New York Mercantile Exchange.
The precious metal sustained its largest one-day loss since late May on Friday, following the announcement that the U.S. added 255,000 jobs in July that also boosted the possibility that the Federal Reserve could raise benchmark interest rates as soon as September. The nonfarm employment figure exceeded analysts' expectations of 179,000 new jobs.
"It's a classic narrative, but as employment and bond yields are improving [in the U.S.], it's more expensive to hold gold," said Bernard Dahdah, a precious metals analyst at Natixis.
Higher interest rates tend to weigh on the price of gold, which doesn't accrue interest and struggles to compete with yield-bearing investments.
The probability of the Fed raising rates this year has increased to 47%, Commerzbank said in a note to clients, citing Fed Fund Futures.

AUD/USD ratio is showing little movement on Monday

AUD/USD ratio is showing little movement on Monday. Long and short positions are close to an even split, indicative of a lack of trader bias as to what direction the pair will take next.•AUD/USD was flat in the Asian session and posted slight gains in European trade. The pair has posted gains early in the North American session
•0.7560 is providing support
•There is resistance at 0.7701
•Current range: 0.7560 to 0.7701
Further levels in both directions:
•Below: 0.7560, 0.7440, 0.7339 and 0.7251
•Above: 0.7701, 0.7835 and 0.7938
The Australian dollar has edged higher on Monday, erasing the losses which marked the Friday session. Early in the North American session, AUD/USD is trading at 0.7650. In economic news, Australian ANZ Job Advertisements declined 0.8%. Later on Monday, we’ll get a look at NAB Business Confidence. In the US, the sole event on the schedule is the Labor Market Conditions Index. The indicator has recorded five straight declines. Will we see a move into positive territory?

USD/JPY trades up 0.7% at 102.53

 USD/JPY trades up 0.7% at 102.53, as the dollar gains in the wake of Friday's stronger-than-expected U.S. jobs data. Boris Schlossberg, managing director of FX strategy at BK Asset Management thinks a September U.S. rate hike is unlikely, but says further strong U.S. data raises the prospect of a strong hint in September of a rate hike in December. "The key to that thesis is the quality of U.S. data over the next few weeks. If it proves supportive, starting with the retail sales this Friday the USD/JPY ... could climb towards the 104.00 figure

Sterling is set to fall further against the dollar

Sterling is set to fall further against the dollar in the medium to long term due to the uncertainty following the U.K.’s vote to leave the European Union. In fact, the currency is expected to hit $1.25 sooner than later, a number of analysts told CNBC.
“I have a 1.25 forecast for GBP/USD over the next three months. If the data remains weak, that forecast risks being revised further lower,” Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets told CNBC via email.
“The recalibration of macro assumptions post-Brexit has yet to force the Bank of England to forecast annual negative growth. However, the scale of the immediate growth revisions has prompted an aggressive policy response, in large part as the bank attempts to get ahead of what is expected to be increasingly weak real economy data.”