- GBP/USD remains pressured on a day, pares the first weekly gains in five.
- French MP threatens UK over fishing row, EU braces for new NI protocol proposals.
- US Senate passes $ 408 billion debt filibuster until December.
- China’s return fails to improve sentiment amid pre-NFP anxiety.
GBP/USD refreshes intraday low surrounding 1.3600, down 0.14% on a day heading into Friday’s London open.
In addition to the fresh Brexit updates and the pre-Fed market anxiety, risk-off catalysts from China could also be linked to the cable pair’s latest weakness.
Talking about Brexit, the UK-France tussles over the fishing rights take a new turn after the French MP Jean-Pierre Pont said, per the Daily Mail, that the French government should consider scrapping the Touquet Treaty which allows the UK to set up border checkpoints on French soil. Elsewhere, European Commission Vice President Maros Šefčovič showed readiness for “Very far-reaching" proposals over Northern Ireland (NI) protocol edit, per the BBC. However, the UK policymakers need drastic changes and hence the deadlock is less likely to be overcome soon.
On a different page, China’s Fantasia becomes another real estate player whose bonds are banned after Evergrande and weighed on the risk appetite, helping the US dollar. Further, early signals for the US Nonfarm Payrolls (NFP), up for publishing today, add to the Fed tapering woes and underpin the US Treasury yields, indirectly favoring USD bulls. Forecasts suggest, the headline Nonfarm Payrolls (NFP) to rise by 488K versus 235K prior whereas the Unemployment Rate may ease to 5.1% versus 5.2% previous readouts.
Earlier in the day, the US Congress passes the bill favoring the debt ceiling extension by $408 billion until early December 2021, which in turn favored risk-on mood. On the same line were positive headlines concerning the Sino-American relations and the People’s Bank of China’s (PBOC) readiness to keep the financial markets liquid.
It should be noted that the Bank of England (BOE) policymakers keep their cautious optimism, per the latest comments published the previous day, which in turn helped the GBP/USD prices to remain firm on Thursday amid a brighter mood.
Looking forward, the US jobs report becomes the key data for the GBP/USD traders to watch amid Fed tapering woes.
Read: US Nonfarm Payrolls September Preview: How far will markets go when the Fed tapers?
Technical analysis
GBP/USD cheers a sustained break of the 10-DMA and previous resistance line from September 14, respectively around 1.3570 and 1.3555. However, 38.2% Fibonacci retracement (Fibo.) of July-September fall guards immediate upside near 1.3630.
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
AUD/USD: Some contention seems to have emerged near 0.6500
Another day, another pullback in AUD/USD. This time the pair dropped to multi-week lows and approached the key 0.6500 support, always on the back of weak commodity prices and concerns surrounding the Chinese economy.
EUR/USD: Downside halted near the 200-day SMA
EUR/USD regained some balance and left behind two consecutive daily declines, advancing to the 1.0870 region following the indecisive price action in the US Dollar ahead of key PCE data due on Friday.
Gold challenges critical support
Gold remains under selling pressure on Thursday, trading near a fresh multi-week low of $2,357.92. The bright metal eased throughout the first half of the day amid a dismal market mood. Equities led the way, falling on the back of weak earning reports and a sharp slide in the tech sector.
SEC vs. Ripple lawsuit closed-door meeting could result in resolution, XRP hovers around $0.62
Ripple hovers above key support at $0.62 as traders await a resolution in the US Securities & Exchange Commission lawsuit. The meeting is scheduled to occur behind closed doors on July 25. According to pro-crypto attorney Fred Rispoli, the lawsuit against Ripple could end by July 2024.
Buying on a market decline
In today’s TradeGATEHub Live Trading session, Coach Dale inquires about the specific issues Michael Venezia was buying during the recent market decline. Dale also provides a detailed analysis of precious metals, sharing his insights on potential downside targets.