On the final trading day of the month, we should see extensive price action both in the London and US sessions. Overnight in the Asia session, the big mover was Australian Dollar which rallied 50 pips from from .7290 and is now testing significant resistance at .7340 early in the London session.
German unemployment rate figures are being released at 8:55 am GMT with another contraction expected after 90,000 jobs were lost last month (Expectation: – 40,000). Italian GDP will be released shortly thereafter at 9:00 am GMT snapback into positive territory expected after a contraction last month of -0.7% Y/Y. (Expectation: 17.3% Y/Y)
During the US session, we have GDP also being released from Canada at 8:30 am GMT (Expectation: 2.7% Y/Y). Early in the London session, USD/CAD broke below 1.2600 and could likely look to extend a larger move downward during the US session with it’s sights on the key 1.2500 level.
Risk-on sentiment is strong heading into the London session which means AUD, CAD and exotics like South African Rand all can extend their gains ahead of September 1st. Bitcoin also could challenge the key $50,000 level before the day is done.