All Articles Tagged - GBPUSD

Market Comment – Dollar extends gains, BoE enters the limelight

Posted on August 3, 2023 at 7:54 am GMT

Dollar strengthens on ADP and US debt downgrade ISM non-mfg. PMI the next test for dollar traders BoE expected to hike by 25bps; Will it sound hawkish? Wall Street slumps after US rating cut Dollar wears its safe-haven suit The US dollar continued gaining ground on Wednesday and it appears to be holding firm today as well. The greenback has been slowly gaining ground since the beginning of the day on Wednesday, perhaps due to safe-haven inflows after the unexpected [..]

Technical Analysis – GBPUSD tests ascending trendline ahead of BoE meeting

Posted on August 2, 2023 at 3:20 pm GMT

GBPUSD has been in a prolonged uptrend since October 2022, storming to a fresh 15-month high of 1.3141 on July 14. Since then, the pair has been experiencing a downside correction, which has reached a crucial territory as the price is currently challenging the upward sloping trendline that connects the higher lows from October 2022 to date. The short-term oscillators suggest that bearish forces are intensifying. Specifically, the MACD is negatively closing the gap with the 0 mark, while the RSI is ticking downwards beneath its 50-neutral [..]

Market Comment – Dollar gains after ISM manufacturing data

Posted on August 2, 2023 at 8:11 am GMT

Dollar gains as ISM mfg. new orders beat estimates Pound traders await Thursday’s BoE decision Aussie the main loser after RBA stands pat S&P 500 and Nasdaq close in the red, oil hits new three-month high Improving manufacturing outlook helps the dollar The US dollar traded higher against all the other major currencies on Tuesday, but today it seems to be stabilizing, properly extending winnings only against the risk-linked currencies, the aussie, kiwi and loonie. What may have allowed traders [..]

Market Comment – Yen on the slide again, aussie slips on RBA, China worries persist

Posted on August 1, 2023 at 9:12 am GMT

Yen extends losses following BoJ’s surprise bond market intervention Aussie plunges after RBA holds rates, weak Chinese PMI weighs too Dollar stays supported, euro fails to capitalize on strong data No love for the yen from the BoJ The Japanese yen found itself in the familiar position of eyeing fresh lows against its major peers after the Bank of Japan unexpectedly intervened in the bond market on Monday to rein in the steep rise in local yields. The jump in [..]

Technical Analysis – GBPUSD consolidates as pullback fades

Posted on August 1, 2023 at 7:20 am GMT

GBPUSD has been in a prolonged uptrend since October 2022, storming to a fresh 15-month high of 1.3141 on July 14. Since then, the pair has been experiencing a mild downside correction, which seems to be faltering as the price has been directionless in the past few daily sessions. However, the momentum indicators suggest that bearish forces continue to hold the upper hand. Specifically, the MACD remains below its red signal line in the positive zone, while the RSI is hovering slightly [..]

Weekly Technical Outlook – USDJPY, GBPUSD, AUDUSD

Posted on July 31, 2023 at 2:54 pm GMT

Central bank meetings will stay in the limelight for another week, with the Reserve Bank of Australia (RBA) and the Bank of England (BoE) expected to follow their European and US pears in raising interest rates. On the data front, the US employment report might cause fresh swings in rate expectations as the Fed indicated a more data-dependent approach. RBA policy meeting –> AUD/USD The RBA has been raising interest rates with some breaks since March, skipping a rate increase in July for the [..]

Will the BoE go back to 25bps interest rate increments? – Preview

Posted on July 31, 2023 at 1:09 pm GMT

With inflation in the UK slowing by more than expected in June and the July PMIs revealing that UK business activity continues to weaken, investors have become increasingly convinced that the Bank of England may need to slow down the pace of its future hikes and return to 25bps increments. The Bank meets on Thursday at 11:00 GMT and it will be interesting to see whether this will be the case and how the overall outcome could affect the British [..]

Market Comment – Stocks rally but dollar holds firm on soft PCE inflation

Posted on July 31, 2023 at 9:04 am GMT

Expectations of further Fed rate hikes evaporate after dip in core PCE Stocks rejoice but dollar stays in demand as yen’s comeback bid falters RBA decision coming up, BoE next on Thursday ahead of US jobs report Fed pause seen as a certainty after core PCE eases The markets’ conviction that the Fed’s July rate hike was a one and done got a boost on Friday after the central bank’s favourite inflation metric fell more than expected, underscoring the view [..]

Week Ahead – NFP report to probably steal the limelight from BoE and RBA

Posted on July 28, 2023 at 10:29 am GMT

The Bank of England and Reserve Bank of Australia will wrap up the summer central bank decisions in the coming week, although the US jobs report may attract the most attention. The ISM PMIs will be the other highlights in the United States, while employment numbers are due in Canada and New Zealand too. Over in Europe, the agenda will be dominated by flash inflation and GDP data. Oil will also be in the spotlight as the OPEC+ alliance holds [..]

Technical Analysis – Will GBPUSD repeat July’s bull race?

Posted on July 25, 2023 at 7:58 am GMT

GBPUSD is having a déjà vu of its trendline bounce on June 30, which helped the pair to advance towards a 15-year high of 1.3141 after a tick below the 20-day simple moving average (SMA). The pair paused its latest bear run near the short-term support trendline from June, but again the technical indicators cannot guarantee a sustained rebound. The RSI has extended its downtrend towards its 50 neutral mark and the MACD remains negatively charged below its red signal line. Hence, although the [..]

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