GBP/USD jumps above 1.32 in Europe

Omkar Godbole FXStreet Contributor

GBP/USD rose to a session high of 1.3222 as the demand for the US dollar remains weak and the investors brace up for the data-heavy week ahead in the UK.

The UK consumer price index is seen rebounding 0.5% m/m in August, compared to a 0.1% drop in July. The annualized figure is likely to come-in at 2.8%. Later in the week, UK wage growth numbers and the Bank of England rate decision will attract market attention.

Lawmakers are due to vote later today or early Tuesday on the European Union (Withdrawal) Bill, which aims to convert around 12,000 EU laws and regulations into domestic statute on the day the country leaves the bloc in March 2019. The UK government has warned of a chaotic Brexit if lawmakers don't back the bill.

At press time, the currency pair was well bid at 1.317 levels. With no major data due for release in the US, the spot remains at the mercy of the broader market sentiment, which is likely to be in favor of risk assets, courtesy of the better-than-expected Chinese PPI released on Saturday.

GBP/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "technically, the 4 hours chart shows that the 20 SMA maintains a strong bullish slope below the current level, now providing a dynamic support around 1.3120. In the same chart, technical indicators head nowhere, but within overbought territory, maintaining the risk towards the upside. Friday's high is the immediate resistance at 1.3223, ahead of the mentioned 1.3266 level for today, while below the mentioned daily low, the pair can extend its decline towards the mentioned 20 SMA at 1.3120."

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.