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GBP/USD: Upward momentum is likely to lead to a higher range – UOB Group

Slight increase in upward momentum is likely to lead to a higher range of 1.3475/1.3535 rather than a sustained advance. In the longer run, Pound Sterling (GBP) is likely to continue to range-trade; a narrower range of 1.3420/1.3560 is likely to enough to contain the price movements, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

GBP is likely to continue to range-trade

24-HOUR VIEW: "After our expectation for GBP to test 1.3545 did not materialise, we stated last Friday that 'the underlying tone still appears firm, and there is a chance for GBP to test 1.3545.' Our view turned out to be incorrect, as GBP dropped to a low of 1.3447 before staging a sharp and swift rebound to a high of 1.3518. GBP closed marginally lower at 1.3503 (-0.03%). There has been a slight increase in upward momentum, but this is likely to lead to a higher range of 1.3475/1.3535 rather than a sustained advance."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (28 Aug, spot at 1.3500), we stated that GBP 'is likely to trade in a range between 1.3395 and 1.3575.' GBP is likely to continue to range-trade, but a narrower range of 1.3420/1.3560 is likely enough to contain the price movements for now."

AUD/USD advances to near 0.6550 as US Dollar declines ahead of US job data

The AUD/USD pair gains sharply to near 0.6560 during the European trading session Monday. The Aussie pair advances as the US Dollar (USD) underperforms its peers on expectations that the Federal Reserve (Fed) will cut interest rates in the monetary policy meeting this month.
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USD/JPY consolidates around 147.00 at the start of busy US-data week

The USD/JPY pair trades in a tight range around 147.00 during the European trading session on Monday. The pair wobbles, even as the US Dollar (USD) sinks to its monthly low, suggesting that the Japanese Yen (JPY) is also weak.
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