All Articles Tagged - GBPUSD

Will UK jobs data give any meaningful signals? – Preview

Posted on May 13, 2024 at 3:03 pm GMT

UK set to report further softening in employment conditions Data accuracy issues persist, but wage growth could still move the pound GBPUSD needs to gain buying confidence above 1.2700 BoE leans towards a rate cut The Bank of England (BoE) left interest rates steady at a 16-year high of 5.25% last Thursday as widely expected, and although it did not pre-commit its future policy path, it telegraphed that a summer rate cut is on the cards. While the majority of the [..]

Week Ahead – US inflation numbers to shake Fed rate cut bets

Posted on May 10, 2024 at 10:17 am GMT

Fed rate-cut speculators rest hopes on US inflation data After dovish BoE, pound traders turn to UK job numbers Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start Spotlight turns to US CPI numbers At last week’s meeting, the Fed appeared less hawkish than expected, with Chair Powell ruling out rate hikes and hinting that they are still leaning towards cuts. The softer-than-expected jobs report for April corroborated [..]

Market Comment – Dollar slides, gold shines after soft US labor market data

Posted on May 10, 2024 at 8:23 am GMT

Dollar drops as jobless claims signal labor market is losing steam Gold and stock markets climb, capitalizing on Fed rate cut bets Sterling retreats on BoE decision, but recovers after GDP stats Softer US jobs data fuels rate cut hopes Global markets are set to close the trading week in a cheerful mood after another round of incoming US employment data pointed to an ongoing softening in the labor market, fueling hopes that the Fed might cut interest rates sooner [..]

Technical Analysis – GBPUSD retreats further after BoE’s decision

Posted on May 9, 2024 at 12:22 pm GMT

GBPUSD tests 1.2465 strong support Remains beneath downtrend line Oscillators suggest more negative bias GBPUSD is continuing the strong selling interest after the BoE policy decision, where the central bank kept interest rates unchanged. The pair is battling with the 1.2465 barrier, slipping beneath the 20-day simple moving average (SMA). More decreases could drive the market towards the five-month low of 1.2300 ahead of the 1.2180 zone, registered back in November. Alternatively, a climb back above the 200-day SMA at 1.2540 could send the [..]

Market Comment – Pound slides ahead of Bank of England decision

Posted on May 9, 2024 at 7:57 am GMT

BoE meeting in the spotlight today – likely to downplay June rate cut Yen languishes, trapped between FX intervention and low interest rates Dollar recovers, stocks and gold steady, waiting for US inflation update BoE – No rate cuts yet In a relatively quiet week, the spotlight today will fall on the Bank of England’s interest rate decision. Markets are pricing an almost 50-50 chance for a rate cut in June, so the question for traders is whether the Bank [..]

Technical Analysis – GBPUSD pulls back after testing 50-day SMA

Posted on May 8, 2024 at 8:30 am GMT

GBPUSD reverses lower after 50-day SMA curbs advance Violates both the 200-day SMA and descending trendline Momentum indicators are neutral-to-negative GBPUSD had been in a recovery mode following its bounce off the five-month bottom of 1.2298, with the price temporarily violating the 200-day simple moving average (SMA). However, the pair retraced back below the downward sloping trendline, in place since March, after failing to conquer the 50-day SMA. Should bearish pressures persist, the price may retreat towards the April support of 1.2405. Further declines [..]

Market Comment – US dollar recovers, stocks’ rally stalls as market tries to find its footing

Posted on May 8, 2024 at 7:49 am GMT

Fed expectations drive the market; three Fed speakers on the wires today Dollar recovers but all eyes are on the US stocks and Treasury yields The pound prepares for the BoE meeting as elections gain more airtime Yen on the back foot again; gold steady amid the Israeli ground operation Dollar recovers, equity rally stalls The US dollar has almost erased its NFP losses against the euro as the US stock indices’ rally has stalled. Dovish expectations have taken centre [..]

Weekly Technical Outlook – USDJPY, GBPUSD, USDCAD

Posted on May 7, 2024 at 3:01 pm GMT

Strengthening rate cut projections weigh on USDJPY; upward pattern intact above 151.90 GBPUSD faces rejection near familiar resistance of 1.2630 ahead of BoE policy announcement USDCAD trends within a short-term bearish channel; key support level at 1.3530 Intervention risks, Fed talk –> USDJPY The week ahead will be light in terms of US data releases, but a couple of Fed speakers will be on the wires to comment on monetary policy and perhaps fuel fresh volatility in the greenback. Meanwhile [..]

Technical Analysis – GBPUSD advances above descending trendline

Posted on May 3, 2024 at 1:27 pm GMT

GBPUSD surges after weaker-than-expected NFP data The pair violates 200-day SMA and challenges 50-day SMA Momentum indicators remain neutral-to-positive GBPUSD has been in a recovery mode following its bounce off the five-month bottom of 1.2298. On Friday, the advance accelerated, with the price violating both the 200-day simple moving average (SMA) and the downward sloping trendline in place since February on the back of a softer-than-expected US jobs report. Should bullish pressures persist and the pair conquers the 50-day SMA, initial resistance [..]

Week Ahead – BoE and RBA decisions headline a calm week

Posted on May 3, 2024 at 7:36 am GMT

Bank of England meets on Thursday, unlikely to signal rate cuts Reserve Bank of Australia could maintain a higher-for-longer stance Elsewhere, Bank of Japan releases summary of opinions BoE – No rate cuts yet Britain’s economy seems to have escaped the shallow recession it fell into last year, and has finally entered the recovery phase. Business surveys point to solid growth in the first quarter and even stronger momentum in the second quarter, powered by a rebound in consumer [..]

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