The week has been quiet, as participants await they key risk events on Thursday and Friday, with the BoE decision and the US non-farm payrolls expected later in the week.
The week is one of data, with UK Markit/CIPS Manufacturing PMI (Jul) 55.1 vs. Exp. 54.4 (Prev. 54.3, Rev. 54.2). The slight beat has tempted some GBP buying, as GBP/USD continues to trade above 1.32. The level does continue to behave as support this week, as bulls look to target a continued assault of the USD, with us now trading in the 2016 range.
The greenback has slowed from its bearish attack throughout today’s trade, yet has still consolidated under 93.00. The day has seen subdued trade; with much of the volatility seen yesterday, supported by holstered guns as investors await the NFP.
Data was seen out of the US, with markets seemingly unfazed. The mixed PCE and ISM reports led to distance being kept from the figure, as EUR/USD saw its break through 1.18 yesterday, now consolidating above these levels.
A risk off tone was seen later in the session, with some JPY buying clear, alongside the bullish pressure seen in Treasuries and Gold. USD/JPY continues to trade around key levels, with 110.00 becoming a key support as a battle is clear around this level.