Market Analysis: Currencies in Tight Ranges ahead of Jackson Hole Symposium


Major currency pairs are trading near the previously reached extremes in anticipation of news from the US. The EUR/USD currency pair fell yesterday to 1.0800, but bounced back sharply, the GBP/USD pair tested support at 1.2600, but still remained above the alligator lines on the weekly timeframe, and USD/JPY is retesting the 145 figure. Apparently, investors and market participants are waiting for comments from the head of the Fed about the future monetary policy of the regulator. Tomorrow starts the annual symposium in Jackson Hole, where a report by Jerome Powell will be heard.


In the US dollar/Japanese yen pair, the reversal bearish bar from August 17 near 145.60 worked out. At the moment, the downward pullback has encountered support at the Alligator lines. If the price holds above 145.00 for several trading sessions, a resumption of growth towards recent highs at 146.50 may occur. But a break of support at 145.00 may mean a deeper correction towards 143.00-141.00.

Today at 15:30 GMT+3 we are waiting for data on basic orders for durable goods in the US for July. Also at the same time, weekly figures on the number of applications for unemployment benefits will be released. Tomorrow early in the morning traders will pay attention to the core consumer price index (CPI) in Tokyo.


Weak data on business activity indices in the UK services and non-manufacturing sectors, published yesterday, contributed to a sharp drop in the pair to 1.2600. Sellers of the pound are trying to break this support for the third time this month, but so far without success. At the moment the price is at 1.2700. If the range of 1.2700-1.2600 holds in the coming trading sessions, a resumption of growth towards 1.3000-1.3100 can be expected.


In the euro/US dollar pair, we are seeing a rebound from 1.0800. The range of 1.0800-1.0860 is very important for the further pricing of the pair. As long as the price is higher, the chances of a resumption of growth are high.

Tomorrow at 09:00 GMT+3 we are waiting for data on German GDP for the Q2. At 22:00 GMT+3, ECB President Christine Lagarde will speak at the annual Economic Policy Symposium "Structural Shifts in the Global Economy" organised by the Federal Reserve Bank of Kansas City in Jackson Hole.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Commodity Currencies Retreat from Local Highs Market Analysis: AUD/USD and NZD/USD Set Sights on Additional Upside The US Dollar Is Weakening Following Inflation Data Dollar Adjusts After the Publication of Inflation Data in the US Market Analysis: EUR/USD Sees Green as USD/JPY Gains Bullish Traction

Latest articles


Tech Stocks Back in Vogue as Nasdaq 100 Rallies to Record High

The tech-heavy Nasdaq 100 index (US Tech 100 mini on FXOpen’s TickTrader platform) reached a new all-time high on Monday, closing the trading session at 18,684.2 according to FXOpen pricing, fueled by renewed investor enthusiasm for technology


Gold Price Reaches Historic High

According to confirmed information, Iranian President Ebrahim Raisi, considered a potential successor to the country's supreme leader, Ayatollah Ali Khamenei, died in a helicopter crash in a mountainous area near the border with Azerbaijan. The helicopter also carried Foreign Minister

Forex Analysis

Commodity Currencies Retreat from Local Highs

Despite the cooling labour market in the US and declining inflation, the American currency continues to move towards new highs. For instance, the USD/JPY currency pair might update the current month's high at 156.70, the NZD/USD sharply

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.