GBP/USD posted gains but has then retracted on Wednesday

GBP/USD posted gains but has then retracted on Wednesday, as the pair trades slightly below the 1.31 line. On the release front, British GfK Consumer Confidence came in at -7 points, within expectations. In the US, we’ll get a look at two key indicators – ADP Nonfarm Employment Change and Pending Home Sales. On Thursday, the US releases unemployment claims and the ISM Manufacturing PMI. The UK will publish Manufacturing PMI.
GBP/USD Technical
S1 S2 S1 R1 R2 R3
1.2849 1.2938 1.3064 1.3142 1.3219 1.3327
•GBP/USD posted slight gains in the Asian and European sessions. The pair has posted considerable losses in North American trade
•1.3064 is providing support
•1.3142 has some breathing room in resistance following considerable losses in the North American session
Further levels in both directions:
•Below: 1.3064, 1.2938 and 1.2849
•Above: 1.3142, 1.3219, 1.3327 and 1.3480
•Current range: 1.3064 to 1.3142
GBP/USD ratio has posted small gains on Wednesday. Long positions have a majority (55%), indicative of trader bias towards GBP/USD breaking out and moving upwards.

U.K. purchasing managers' indexes for August

 U.K. purchasing managers' indexes for August will be key indicators for sterling, starting with the manufacturing index on Thursday, followed by construction Friday and services Monday. After very weak readings for July following the U.K. vote to leave the EU, the market is expecting a modest rebound in August. CIBC strategist Jeremy Stretch says he would look to sell GBP/USD rallies if the rebound should "prove less robust than expected," looking for a test of $1.30 once $1.3020/25 is breached. GBP/USD trades firmer for now, up 0.1% at $1.3119.

GBP/USD has recorded small losses on Tuesday

GBP/USD has recorded small losses on Tuesday, as the pair trades slightly below the 1.31 level. On the release front, British Net Lending to Individuals dropped to GBP 3.8 billion, well short of the forecast. Later in the day, GfK Consumer Confidence is expected to come in at -8 points. In the US, today’s highlight is CB Consumer Confidence. The indicator is expected to remain steady, with a forecast of 97.2 points. On Wednesday, the US will release two key events – ADP Nonfarm Employment Change and Pending Home Sales.
•GBP/USD posted slight gains in the Asian session and is flat in European trade
•1.3064 was tested earlier in support and could break in the North American session
•There is resistance at 1.3142
Further levels in both directions:
•Below: 1.3064, 1.2938 and 1.2849
•Above: 1.3142, 1.3219, 1.3327 and 1.3480
•Current range: 1.3064 to 1.3142
GBP/USD ratio is showing little change on Tuesday, consistent with the lack of movement from GBP/USD. Long positions have a small majority (52%), indicative of trader bias towards GBP/USD moving reversing directions and moving upwards.

Long Yen trades a problem

Long Yen trades a problem
For sometime the FX market has been overly long yen positions for a number of reasons, source of funding for carry trades and for risk aversion purposes. With the BoJ’s back against the wall, the long yen trade looked appealing.
A ‘hawkish’ Fed and a ‘dovish’ Kuroda at last weekend’s Jackson Hole has been pressurizing these ‘weaker’ longs (¥102.33). Overnight, the yen ‘bear’ got further support from PM Abe’s advisor Hamada – he called on the Finance Ministry to “courageously” intervene in FX markets to stem the yen’s appreciation, accusing the MOF of lost credibility on exchange rate. The response is that cabinet is closely watching FX markets and prepared to respond appropriately.
Currently, the market consensus is leaning towards the Bank of Japan (BoJ) favoring deeper negative interest rates at next months monetary policy meeting (September 20).
•USD/JPY has posted slight gains in the Asian and European sessions
•102.36 was tested in resistance earlier and is a weak line
•101.20 is providing support
•Current range:101.20 to 102.36
Further levels in both directions:
•Below: 101.20, 99.71, 98.95 and 97.78
• Above: 102.36, 103.73 and 104.99
USD/JPY ratio is showing little movement on Tuesday. Currently, long positions have a strong majority (69%), indicative of trader bias towards USD/JPY continuing to move to higher ground.

Japanese yen has posted small gains on Monday

The Japanese yen has posted small gains on Monday. Currently, USD/JPY is trading slightly above the 102 line. On the release front, The US will release the Core PCE Price Index and Personal Spending. In Japan, the focus is on consumer spending indicators, with the release of Household Spending and Retail Sales. On Tuesday, the US will release CB Consumer Confidence, a key indicator.
•USD/JPY posted slight gains in the Asian session and has showed limited movement in European trade
•102.36 was tested in resistance earlier and could break in the North American session
•101.20 is providing support
•Current range:101.20 to 102.36
Further levels in both directions:
•Below: 101.20, 99.71, 98.95 and 97.78
• Above: 102.36, 103.73 and 104.99
USD/JPY ratio is showing little movement, consistent with the lack of movement from USD/JPY. Currently, long positions have a strong majority (71%), indicative of trader bias towards USD/JPY continuing to move to higher ground.

GBP/Frank

Summary :
Target Level : 1.2749
Target Period : 2 days
Analysis :
Rising Wedge identified at 29-Aug-04:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.2749 within the next 2 days.
Supporting Indicators :
RSI above 60
Resistance Levels :
( B ) 1.2854Last resistance turning point of Rising Wedge.
Support Levels
( A ) 1.2749Last support turning point of Rising Wedge.

Chart date range : 11-Aug-16:00 GMT-> 29-Aug-08:00 GMT Data interval : 4 hour RSI: 34 Candles MA: 34 Candles

Diversification and the dollar overhang.

Precious metals are notoriously difficult to trade. Even traders turn out to be right, knowing when to place and press your bets won't be easy. Gold and silver are small, fairly illiquid markets relative to the kinds of positions the biggest "macro tourists"  non-professional investors  have on. If you want to know what is happening in the money supply, look to the lending portions of the economy, not base money, to get the real story.
The Fed wants to see lower prices of stocks and commodities and it seems that they will. The situation for gold is also rather bearish for the medium term as the gold-to-bonds and Dow-to-gold ratio charts suggest that another decline may be in the cards.
While the physical silver market goes far beyond APMEX, both domestically and especially internationally, the buying habits of the (large) APMEX client base could be considered a decent proxy for the overall retail market. The APMEX Top 40 Best Sellers page lists several silver coins and rounds, along with gold, palladium, and platinum products. Disregarding fractionals, the silver coins and rounds were listed in the following order, as of May 25:
1. APMEX Silver Round (Legally, issues by private minters are not considered "coins" at all and must be referred to as "rounds.")
2. Silver American Eagle
3. Silver Canadian Maple Leaf
4. Silver Mexican Libertad
5. Morgan / Peace Silver Dollar

Gold prices Silver prices