All Articles Tagged - GBPUSD

UK PMIs unlikely to rescue pound from mounting risks – Forex News Preview

Posted on May 19, 2020 at 1:39 pm GMT

In Britain, the preliminary PMIs for May will hit the markets at 08:30 GMT Thursday, ahead of retail sales for April at 06:00 GMT on Friday. The PMIs are expected to rise, but to remain deep within contractionary waters, while retail sales are primed for a record collapse. As for the pound, it is being battered from all sides. The UK economy will reopen very slowly, investors are worried that today’s exploding deficit will result in austerity tomorrow, the BoE [..]

Daily Market Comment – Vaccine hopes power markets higher, can Powell add more fuel?

Posted on May 19, 2020 at 8:28 am GMT

Vaccine headlines, Fed stimulus bets, and EU recovery package propel stocks higher Yen, dollar, and franc suffer as euro and commodity currencies cheer Fed chief testifies before US Senate today (14:00 GMT), can he keep the ‘party’ going? Perfect storm for stocks Risk appetite returned with a vengeance to global markets on Monday, with the S&P 500 (+3.15%) having its best day in weeks amid a perfect storm of news around a virus vaccine, more Fed stimulus, and a European [..]

Technical Analysis – GBPUSD attempting to end bearish trend formation

Posted on May 19, 2020 at 7:43 am GMT

GBPUSD dropped as low as 1.2074 after breaking the 1.2246 neckline of the bearish double top pattern on the four-hour chart. The price is now pushing efforts to recover above that border and distance itself from its shorter-term moving averages (SMAs) in order to eliminate negative trend signals. With the RSI ready to expand above its 50 neutral mark and the Stochastics having yet to confirm overbought conditions, additional gains could be possible in the short-term. However, on the way up, [..]

UK jobs and CPI data to kick start busy week for sterling as Brexit risks weigh – Forex News Preview

Posted on May 18, 2020 at 1:31 pm GMT

A raft of economic data is due out of the United Kingdom this week, starting with the labour market report on Tuesday and the consumer price index on Wednesday. Both will be released at the earlier than usual time of 06:00 GMT. Following last week’s dire GDP figures, traders should be braced for more depressing readings on the economy, with the March jobs numbers stealing the limelight early in the week. But as if things weren’t critical enough with the [..]

Daily Market Comment – Stocks and gold climb as Fed hopes overpower trade fears

Posted on May 18, 2020 at 8:34 am GMT

US equities set to open higher, gold soars after Fed chief’s ‘whatever it takes’ moment But escalating US-China tensions & second wave fears lurking in the background Pound sinks as investors brace for Brexit talks to fall apart Powell turbocharges gold, lifts stocks Global markets are in a good mood on Monday, with commodity currencies recovering and Wall Street set for a ~1.5% higher open, following a ‘whatever it takes’ moment from Fed Chairman Powell. In remarks published over the [..]

Week Ahead – Reopening woes and trade fears dent sentiment

Posted on May 15, 2020 at 12:44 pm GMT

The coming week seems relatively quiet. The preliminary PMIs for April in the UK, US, and Eurozone will give us an update on how much businesses have suffered, while the minutes of the latest Fed meeting might reaffirm the central bank’s willingness to do even more, even as Chairman Powell hints that Congress should take the lead. Overall though, the most important variables for investors may be how quickly new virus cases increase now that economies are partially re-opening, and [..]

Daily Market Comment – US-China tensions simmer but markets still betting on recovery

Posted on May 15, 2020 at 8:55 am GMT

Trump threatens to “cut off” relationship with China as row over virus spread escalates But market fallout limited as hopes of recovery and more stimulus prevail Dollar headed for weekly gains, eyes US retail sales data Trump continues attack on China President Trump stepped up his fierce criticism of China as he continued to blame the country for failing to stop the spread of the coronavirus. Speaking to Fox Business Network on Thursday, Trump cast doubt on future trade links [..]

Technical Analysis – GBPUSD at risk of a bearish trend after double top formation

Posted on May 15, 2020 at 6:25 am GMT

GBPUSD is flashing bearish trend signals on the four-hour chart as the price seems to have completed a double-top pattern below 1.2246. With the shorter-term simple moving averages (SMAs) also having crossed below the longer-term SMAS, the pair could continue its bearish trajectory, though for that to happen the neckline around 1.2246 and near the 20-period SMA should now act as resistance, while on the downside, the 1.2160 barrier, which is slightly below the 38.2% Fibonacci of the 1.1409-1.2645 upleg, should open the [..]

Daily Market Comment – Powell warns of lasting virus damage, empowers dollar but sinks stocks

Posted on May 14, 2020 at 8:49 am GMT

Fed Chair Powell delivers bleak assessment of US economy but rules out negative rates Dollar stands tall as Wall Street takes a dive, pulling global stocks with it Pound and kiwi slip to multi-week lows, aussie and loonie also on the backfoot Powell’s dire warnings kill hope of speedy recovery Fed Chairman Jerome Powell’s much anticipated speech took centre stage on Wednesday as the head of the world’s most powerful central bank delivered a detailed but grim view of the [..]

With interest rates at zero, what will drive FX now? – Special Report

Posted on May 13, 2020 at 3:08 pm GMT

Interest rate differentials have traditionally driven the FX market, but now that every major central bank has slashed rates to zero, what will guide currencies? In a nutshell, it might be a blend of how high the risk of future shutdowns is, relative growth performance coming out of the crisis, global risk sentiment, and politics. The defensive yen seems attractive in this brave new world as it no longer suffers from a severe yield disadvantage, while the dollar’s role as [..]

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