The British pound was little changed after the relatively strong economic data from the country. According to the Nationwide Society, the country’s home prices rose by 2.1% in August after crashing by 0.6% in the previous month. The sales rose by 11% on a year-on-year basis. The two numbers were better than the median estimates of 0.2% and 8.6%, respectively. This rebound came as demand for homes continued to outpace existing supply. Additional data by Markit revealed that the country’s manufacturing PMI declined to 60.3 in August. This was a better number than the median estimate of 60.1. Therefore, these leading numbers show that the UK economy is doing relatively well.

UK stocks rebounded after the strong economic numbers from the country. The FTSE 250 index soared to an all-time high while the FTSE 100 index rose by more than 0.30%. The top movers in the FTSE 100 index were companies like Just Eat Takeaway, Informa, JD Sports, British Land, and Land Securities. Firms in the housing industry like Taylor Wimpey, Persimmon, and Rightmove also jumped. At the same time, miners like Antofagasta, Rio Tinto, BHP, Fresnillo, and Anglo American declined sharply after the relatively weak China PMI numbers. Data by Caixin showed that the country’s manufacturing PMI declined into the contraction zone in August.

Crude oil prices retreated as investors continued focusing on the ongoing OPEC+ meeting. The members of the cartel are expected to leave the current supply limits intact after oil prices had their worst month this year in April. In a report, the cartel also boosted the outlook of demand even as the world continued experiencing the Delta wave. They expect demand will rise by 5.95 million barrels in 2022 after dropping by about 9m barrels per day in 2020. Oil prices will also react to the latest inventories numbers from the US that will come out later today.


The EURUSD pair rose slightly after the strong Eurozone PMI numbers. It rose to an intraday high of 1.1820, which was slightly below this week’s high of 1.1845. On the four-hour chart, the pair rose above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has been rising. The pair has also formed an inverted head and shoulders pattern. Therefore, the pair will likely maintain a bullish trend as bulls target the key level at 1.1900.


AUDUSD price rose after the strong Australian GDP data. The numbers showed that the country’s economy expanded by 9.6% YoY in the second quarter. On the four-hour chart, the pair is approaching the key resistance level at 0.7430. It is also along the upper line of the Bollinger Bands while key oscillators like MACD and the RSI have been in a strong bullish trend. Therefore, the pair’s path of least resistance is to the upside.


The USDJPY pair popped to a high of 110.40 as it accelerated the gains made after the weak US consumer confidence data. On the four-hour chart, the pair moved above the key resistance at 110.23. It also rose above the 25-day moving average while the DeMarker indicator has risen above the overbought level. Therefore, the pair will likely keep rising, with the next key resistance being at 111.00.

Add a comment