The Pound Sterling (USD) is down marginally on the session but, like many of its G10 counterparts, the pound has settled into a tight trading range into the end of the week, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
Gilts underperform again
“UK bonds remain marginal underperformers but 10Y yields are up only fractionally more than peer markets (a 2.5bps gain in UK yields versus a 2 bps rise in core Eurozone debt, for example). The UK government’s fiscal plans remain under threat from the rise in UK bond yields but comparisons with the 2022 market rout remain wide of the mark, I think.”
“Spot is holding an inside range (holding within yesterday’s intraday range) signal on the daily chart so far—a signl that may suggest some relenting—in the short run, at least—in the bearish pressure on the GBP. The broader picture remains bearish, however, amid bearish trend indicators across the short-, medium-, and long-term oscillators.”
“Gains will be hard to sustain and losses easier to come by in this environment. Resistance is 1.2350/60. Support is 1.2240/50.”
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EUR/USD trades deep in red below 1.0300 after strong US jobs report
EUR/USD stays under bearish pressure and trades below 1.0300 in the American session on Friday. The US Dollar benefits from the upbeat jobs report, which showed an increase of 256,000 in Nonfarm Payrolls, and forces the pair to stay on the back foot heading into the weekend.
GBP/USD drops toward 1.2200 on broad USD demand
GBP/USD extends its weekly slide and trades at its weakest level since November 2023 below 1.2250. The data from the US showed that Nonfarm Payrolls rose by 256,000 in December, fuelling a US Dollar rally and weighing on the pair.
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Following a drop toward $2,660 with the immediate reaction to strong US employment data for December, Gold regained its traction and climbed towards $2,700. The risk-averse market atmosphere seems to be supporting XAU/USD despite renewed USD strength.
Sui bulls eyes for a new all-time high of $6.35
Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising.
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