Weak PMIs failed to dampen GBP/USD

Alexander Kuptsikevich FxPro

The Dollar appears to be tired of rising. This explains why the GBPUSD has risen 0.5% since the start of the day to 1.2980, even though UK PMIs for October failed to meet expectations of maintaining previous levels.

The Manufacturing PMI index fell from 51.5 to 50.3—the lowest since April—against expectations for a continuation. The Service PMI fell to 51.8, the lowest level in eleven months, down from 52.4 in September. The services sector actively pulled the composite index to 51.7 from 52.6 in the previous month.

However, it is worth noting that all the indices remain in growth territory, whereas Europe's manufacturing sector has been signalling contraction for many months.

A separate report from the CBI noted a slight slowdown in the decline of industrial orders, as the corresponding index rose from -35 to -27.

Meanwhile, the British Pound rose for most of the day, coming under pressure immediately after the release of the PMI figures. The GBPUSD has recovered most of Wednesday's losses and is now back at 1.2980. If this rebound develops into a full-blown correction of the previous decline, the pound could bounce to 1.3030 (76.4% of the decline and pivot area in September) or even rise to 1.31 (61.8% of the decline).

However, the fundamental news is still on the side of the GBPUSD sellers, suggesting selling on the growth rather than buying on the dip.

Author

Alexander Kuptsikevich

FxPro

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.