- GBP/USD trades cautiously on Friday in the Asian trading hours.
- The US dollar falls below 93.50 following dismal US GDP figures.
- UK budget, Brexit, and hawkish BOE entertain the pound traders.
GBP/USD remains firm during the Asian session on the last trading day of the week. The pair managed to gather momentum, following the previous session. At the time of writing, GBP/USD is trading at 1.3800, up 0.01% for the day.
The sterling keeps its foot firmly against the majors amidst the broad-based USD selling. The greenback gauge dropped the most since October 13 the previous day after the US Q3 Gross Domestic Product (GDP) fell below the 2.7% forecast to 2.0%, much lower than the previous reading of 6.7%. Investors assessed the downbeat GDP data as a hint that could push the Fed to slow down on its monetary policy normalization hustle.
In addition to that, UK Chancellor Rishi Sunak’s multi-billion pound 2021 budget and the hawkish Bank of England (BOE) seem to support the move in the currency.
The Brexit-led pessimism, however, limits gains in sterling. As per the BBC, France has seized a British trawler and another has been fined amid an escalating row over post-Brexit fishing rights.
As for now, traders keep their focus on the BOE Consumer Credit, Mortgage Lending and US Personal Consumption Expenditures-Price Index to gauge market sentiment.
GBP/USD technical levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD: Not out of the woods yet
The continuation of the selling pressure around the US Dollar lent extra wings to AUD/USD and propelled it back above the 0.6500 barrier ahead of the publication of the RBA Minutes of its November 5 event.
EUR/USD: The extension and duration of the rebound remain to be seen
EUR/USD regained further balance and trespassed the key 1.0600 hurdle to clock three-day highs following extra weakness in the Greenback and some loss of momentum around the Trump rally.
Gold gives signs of life and reclaims $2,600/oz
After suffering large losses in the previous week, Gold gathers recovery momentum and trades in positive territory above $2,600 on Monday. In the absence of high-tier data releases, escalating geopolitical tensions help XAU/USD hold its ground.
Ethereum Price Forecast: ETH risks decline to $2,258 as exchange reserves continue uptrend
Ethereum (ETH) is up 1% on Monday after ETH ETFs hit a record $515.5 million inflows last week. However, rising exchange reserves and realized losses could trigger bearish pressure for the top altcoin.
The week ahead: Powell stumps the US stock rally as Bitcoin surges, as we wait Nvidia earnings, UK CPI
The mood music is shifting for the Trump trade. Stocks fell sharply at the end of last week, led by big tech. The S&P 500 was down by more than 2% last week, its weakest performance in 2 months, while the Nasdaq was lower by 3%. The market has now given back half of the post-Trump election win gains.
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.