GBP/USD bulls tested at critical daily support
GBP/USD is off the recent recovery highs and is at a make or break area on the daily chart. The central banks are in focus and driving the price as well as COVID risk. Due mainly to US dollar strength, GBP/USD is under pressure on Tuesday, down 0.33% at the time of writing after falling from a high of 1.3904 to a low of 1.3800. Read more...
GBP/USD Forecast: At risk of extending its slump on renewed dollar’s demand
The GBP/USD pair ended Tuesday in the red around 1.3820, as the dollar benefited from unexpectedly higher US inflation, with the pair bottoming for the day at 1.3799. The Bank of England released its semi-annual Financial Stability Report, which showed that policymakers expect to maintain the rates at record lows at least until December 2021. “The economic outlook has improved, but risks to the recovery remain, especially those related to the spread of COVID,” the document shows. Read more...
GBP/USD dives to 1.3800 mark, fresh session lows on hotter-than-expected US CPI
A combination of factors prompted some fresh selling around GBP/USD on Tuesday. COVID-19 jitters, Brexit woes continued acting as a headwind for the British pound. Upbeat US CPI report pushed the USD higher and added to the intraday selling bias. The GBP/USD pair dived to fresh daily lows in reaction to hotter-than-expected US consumer inflation figures, with bearish now eyeing sustained weakness below the 1.3800 mark. Read more...
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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