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Sterling rebounding in a quiet Monday trade

Sterling is going through rebound in a quiet Monday trade with no data releases from the UK and with US banks being closed in observance of Labour Day holiday. Sterling has fallen 1.9% versus a basket of 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes in the past month, paring a 5.8% first-half gain when it was the best performer after the Swiss franc. That fall is a blow for hedge funds, which turned positive on the pound versus the greenback for the first time in a year last week.
 
They are relying on a boost to Bank of England interest rates, but traders have pushed back wagers on an increase far into next year. And the pound's appeal as a haven is waning, dampening the prospects of a rally amid the turmoil in emerging markets. Sterling fell to a three-month low against the dollar on Friday, hit by a slew of soft data out of the UK last week that has raised doubts amongst investors on when the Bank of England will hike interest rates.
 
Sterling is currently being traded few points above 1.5240 level. Pair is likely to find support around 1.5160 area and resistance above 1.5260 level. There will be no major data releases in the rest of the session.
 
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Gold prices slightly up in Asian session

Gold prices are up a bit in the Asian session but are expected to remain flat for the day with US markets shuttered for the Labor Day Holiday. Gold added $1.20 to trade at 1122.70 as traders are unsure of the take away from Friday’s nonfarm payroll report. Silver added 51 points to trade at 14.600 and platinum added $1.85 to 992.95. The entire metals family was down for the week. Read more...

Draghi says ECB will closely monitor incoming data

As it was largely expected ECB left its interest rates unchanged. At the following press conference ECB President Mario Draghi said that ECB doesn't commit to more QE, but will use all tools within its mandate if needed. 
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RBA left interest rates unchanged, eyes on China

aud/Australia left interest rates unchanged as a declining currency cushions the impact of lower commodity prices and a weaker outlook for key trading partner China. Reserve Bank of Australia Governor Glenn Stevens and his board kept the cash rate at a record-low 2 percent, as predicted by markets and economists following reductions in May and February. The currency has dropped more than 2 U.S. cents since the last meeting.
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