- GBP/USD has witnessed a minor pause while advancing towards 1.1400.
- The risk-on impulse is still solid and S&P500 is holding gains.
- Fitch Ratings have revised the BOE sovereign outlook to Negative from Stable.
The GBP/USD pair has sensed a minor selling pressure while attempting to hit the immediate hurdle of 1.1400 in the Tokyo session. Investors are continued with their longs in risk-perceived currencies. The 10-year US Treasury yields have recovered the decline and have scaled above 3.75%. While, the S&P500 is not ready to surrender gains and is sustaining at elevated levels.
The US dollar index (DXY) has dragged firmly after failing to cross the immediate hurdle of 111.00. The DXY is expected to remain on the tenterhooks as investors are awaiting the release of the US Nonfarm Payrolls (NFP) for making informed decisions. As per the expectations, the US economy has added 250k jobs vs. the prior release of 315k.
It is worth noting that the US economy has been operating at full employment levels for the past several months. Therefore, space for creating new jobs is extremely low. Apart from that, the Average Hourly Earnings data holds significant importance. The labor cost index data is expected to remain subdued as projections display a decline of 10 basis points (bps) to 5.1% on an annual basis.
On the UK front, investors are worried that poor economic fundamentals could drag the cable to parity. Analysts are divided, according to a Reuters poll in which the outcomes were 3.6% strong British battered pound in a year and parity.
The rollback of the memorandum of historic tax cuts by Finance Minister Kwarteng saved the UK economy from unveiling the most significant increase in borrowing since 1972. But what is haunting the pound bulls now is the negative outlook on Bank of England's (BoE) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) by Fitch Ratings. The revised outlook to Negative from Stable, affirming AA- could vigorously impact the recent pound rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.