GBP/USD Forecast: Recovering from the Fed? Not so fast, as sterling faces UK reopening risks
Freedom Day may be less free than anticipated – The UK may dilute plans to relax COVID-19 rules on June 21 due to worries about the India variant. While the number of people infected with the B.1.617.2 strain of coronavirus remains small, it is growing rapidly – 28% from Monday to Wednesday. The new worries about delaying the reopening come despite reassurances that existing vaccines cope with the variant. Read more...
GBP/USD Forecast: Waiting for a bullish breakout
The GBP/USD pair bounced back, and trades near a daily high of 1.4189 as demand for the dollar receded. The market continues trading according to expectations of rising inflationary pressures in the US and how those could affect the Federal Reserve monetary policy. The favourite measures are government bond yields, which soared with FOMC Minutes on Wednesday, but quickly retreated to end Thursday near weekly lows. Read more...
GBP/USD: Minor support at 1.4115/05
GBPUSD minor support at 1.4115/05. A break lower targets 100 month moving average support at 1.4080/60, perhaps as far as support at 1.4025/15. Gains are likely to be limited with minor resistance at 1.4135/40 & 1.4160/70. Important 6 month trend line resistance now at 1.4220/30. A break higher targets strong 200 week moving average resistance at 1.4300/10. 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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