Talking Points:
– GBP/USD Rebounds Amid Sticky Core Inflation- Will BoE Minutes Reveal Larger Dissent?
– USD/CAD Risks Larger Correction on Less-Dovish Rhetoric from BoC Governor Stephen Poloz
– USDOLLAR Vulnerable to Dovish FOMC; Forward-Guidance for Monetary Policy in Focus

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GBP/USD

Despite sticky core inflation in the U.K, the GBP/USD remains vulnerable to a further decline should the Bank of England (BoE) Minutes show another 7-2 split, while Scotland Referendum poses the largest risk for surprise should the region leave the U.K.
Despite the bullish break in the Relative Strength Index (RSI), the oscillator could be carving out another lower-high as it dips back into oversold territory.
Nevertheless, the DailyFX Speculative Sentiment Index (SSI) continues to narrow, with the ratio currently standing at +1.15.

USD/CAD

USD/CAD slips to fresh weekly low of 1.0971 as Bank of Canada (BoC) Governor Stephen Poloz natural recovery ‘appears to be underway.’
Nevertheless, will continue to look for a higher-low as the pair carves a higher-high in September; inverse head-and-shoulders remains in play as RSI retains bullish momentum.
Next downside region of interest comes in around 1.0900 (23.6% retracement) to 1.0920 (50.0% retracement).

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Read More:
Price & Time: Gold Exhaustion Near?
GBP/USD Extends Losses Below 1.6200 As UK CPI Slows To A 5-Year Low

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10843.53

10898.71

10829.7

-0.30

170.24%

Chart – Created Using FXCM Marketscope 2.0
Dow Jones-FXCM U.S. Dollar Index continues to mark string of higher-highs going into the Federal Open Market Committee (FOMC) meeting; still watching the July 2013 high (11,009).
We will continue to favor topside targets as long as the RSI retains the bullish trend & continues to push deeper into overbought territory.
The forward-guidance laid out by the FOMC will be the key focus as the central bank looks to halt its asset-purchase program at the October 29 meeting.

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Release

GMT

Expected

Actual

Produce Price Index (MoM) (AUG)