FX Report: 18th - 21st August 2025
Buy Side Target
1.3730
Sell Side Target
1.3400
Current Price
1.3553
Our short-term bullish target of 1.3570 has been achieved. We are seeing price stall around this region suggesting a continuation in the mid-term bearish direction leading to our first sell-side target of 1.3400. Should we continue bullish, then 1.3730 and 1.3900 would be our mid-term bullish targets. Our traders would be paying attention to this region for suggestions in change of sentiment in the market or continuation with the previous selling bias.
United Kingdom: Inflation Remains Elevated & Geopolitical Optimism Supports Sterling
Diplomatic Progress Supports Pound
The pound edges higher to around $1.3515, buoyed by improved investor sentiment following signs of diplomatic progress toward a peace settlement involving Russia and Ukraine. This gain follows strong UK economic data and a shift toward a more hawkish tone from the Bank of England.
Sticky Inflation Dampens BoE Easing Hopes
CPI inflation remains elevated at 3.8%, with food and services inflation particularly persistent. This suggests limited room for further aggressive rate cuts from the BoE, which dampens longer-term easing expectations.
United States: Dollar Pressured Ahead of Jackson Hole Symposium
Dollar Holds Steady Pre-Jackson Hole
The dollar remains relatively stable as markets await insights from the upcoming Jackson Hole symposium. With investor focus shifting toward Fed communication and possible policy cues, near-term USD volatility is low but direction remains closely tied to Fed messaging.
July’s Producer Price Index Signals Rising Business Costs
U.S. July PPI data reveal a larger-than-expected jump in wholesale prices, signaling increased inflationary pressure on businesses. This reinforces expectations that the Fed may delay rate cuts, providing mixed support to the dollar.
Last FX Report: 11th - 14th August 2025
Buy Side Target
1.3730
Sell Side Target
1.3300
Current Price
1.3442
Market Outcome
Bullish
The market continued bullish allowing our traders to ride the short-term buying momentum up to our short-term target of 1.3570 using our proprieatry tools and software.
*Contracts for difference (CFDs) are complicated financial contracts based on leverage, which can possibly result in huge fluctuations in profits or losses. Therefore, it is essential to study and understand CFDs thoroughly before embarking on investment. You should at the same time stay conscious and ready yourself for the potential risk of losing a part or your whole capital. This outlook is non-financial advice, you should consult with your personal financial advisor before making any investment decisions.
How we traded this outlook:
