GBP/USD Weekly Forecast: Rate laurels go the the US Federal Reserve
BOE leaves rates, asset purchases unchanged, warns on inflation. Federal Reserve and Chair Powell set the stage for bond taper. US Treasury rates move sharply higher after FOMC meeting. GBP/USD drops below 1.3700 in Friday trading. FXStreet Forecast Poll predicts stronger sterling. The Bank of England and the Federal Reserve are on the same rate page in the central bank policy book, but the US institution appears to be a few paragraphs ahead. Read more...
Here is why GBP/USD might reach 1.32
The British Pound might have received a shot in the arm following the September Bank of England rate meeting. Yet, the chart says that there is still a high risk of a lower GBPUSD in the weeks ahead. Read more...
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GBP/USD Forecast: Holding around 1.3700, bears cautious
The greenback pared losses as the market’s optimism receded on the back of the poor performance of Chinese equities. The GBP/USD pair retreated from a weekly high at 1.3750, currently trading around the 13700 figure. The dollar strengthens particularly against commodity-linked currencies, while European rivals seem to be baring better with the downbeat mood. At the time being, European indexes post modest intraday losses, while US government bond yields retain gains at multi-month highs. 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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