All Articles Tagged - GBPUSD

Can UK PMI and retail sales data lift pound before next BoE decision? – Forex News Preview

Posted on April 19, 2022 at 2:04 pm GMT

The latest flash PMI and retail sales figures for the UK are due on Friday at 08:30 GMT and 06:00 GMT, respectively. These will be the last batch of major indicators before the Bank of England’s policy decision on May 5 so investors will be gauging them to get a sense of policymakers’ thinking on further rate hikes this year. Worries about slowing growth amid the cost of living crisis have been weighing on sterling since Russia’s invasion of Ukraine. [..]

US Open Note – Will the explosion in yields hurt the US housing market

Posted on April 19, 2022 at 1:23 pm GMT

Dollar remains buoyant due to aggressive rate hike rhetoric It is apparent that the Federal Reserve is unpacking one of the most aggressive policy tightening schedules to starve inflation, which has been running at its fastest pace in 40 years and try to cool an overheating economy. Double-rate hikes expected in the next couple of meetings and a Fed funds rate around 3.00% by next year, may brew a cocktail that could wobble the US housing market, in terms of [..]

Technical Analysis – GBPUSD bearish forces struggle at 1.30 handle

Posted on April 19, 2022 at 8:53 am GMT

GBPUSD continues to tackle the 1.3000 barrier, which has proven to be more durable, holding strong since mid-March. That said, the falling simple moving averages (SMAs) are endorsing the descent, and appear to be reinforcing the bearish defences, which are dampening bullish prospects in the pair. Moreover, negative momentum has yet to show signs of significant waning, something also being reflected in the short-term oscillators, which are skewed to the downside. The uptick in the RSI, which is in the [..]

US Open Note – Stocks flicker green, higher yields feed dollar resilience

Posted on April 18, 2022 at 1:37 pm GMT

Fed underpins yields, today’s highlight: RBNZ Governor Orr The week starts off with a bunch of countries observing Easter Monday, and mixed March retail sales out of China, leaving the week’s main market drivers linked to speeches from heads of central banks, Canadian and New Zealand inflation data, and various countries’ retail sales and PMI data on Friday. Elevated price pressures and a hawkish Fed are adding fuel to the US yield fire. Markets are pricing in an additional 211.5 [..]

Technical Analysis – GBPUSD remains below mid-level of Bollinger Band

Posted on April 18, 2022 at 12:57 pm GMT

GBPUSD is falling below the mid-level of the Bollinger band, after finding resistance at the 23.6% Fibonacci retracement level of the down leg from 1.3750 to 1.2970 at 1.3157 over the last couple of weeks. The RSI is slipping below the 50 level and is heading towards the oversold area, while the MACD is moving sideways below its zero level and near its trigger line. Immediate support could come from the 17-month low of 1.2970. Steeper decreases could endorse the [..]

Week Ahead – European PMIs, French debate, and Chinese GDP on tap

Posted on April 15, 2022 at 10:58 am GMT

There are no central bank meetings in the coming week but there’s a ton of data releases to spice things up. The show will kick off with China’s GDP numbers, which will reveal the initial damage from the lockdowns. Meanwhile in Europe, traders will scan the latest PMI surveys to estimate the probability of recession, while keeping one eye on the TV debate between Macron and Le Pen. Chinese slowdown China’s economic growth likely suffered a substantial hit from the [..]

Technical Analysis – GBPUSD gains capped by 200-period MA, bearish risks rekindled

Posted on April 15, 2022 at 9:45 am GMT

GBPUSD’s fresh drop has stabilized around its 50-period simple moving average (SMA), after the scenario of a sturdy rally was dampened by the descending 200-period SMA and the 1.3156-1.3182 barricade overhead. Furthermore, the negative picture in the pair is being nurtured by the downward demeanour of the SMAs. Currently, the Ichimoku lines are highlighting a state of frail driving forces, while the short-term oscillators are transmitting mixed signals in directional momentum. The MACD, slightly above the zero threshold, is suggesting [..]

US Open Note – ECB confirms intention to cease bond purchases; US retail sales come out

Posted on April 14, 2022 at 1:05 pm GMT

ECB left interest rates unchanged; euro back near $1.0870 The European Central Bank left interest rates unchanged as expected. Policymakers stated that new data confirmed their view that net asset purchases will be completed in the third quarter. During the April 2022 meeting, the central bank also emphasized that any interest rate adjustments will take place sometime after the completion of the asset purchase program and will be gradual in nature. In the meantime, the main interest rates were held [..]

US Open Note – BoC decision in the spotlight; dollar still rises

Posted on April 13, 2022 at 1:05 pm GMT

Dollar holds its bullish tone Officials at the Federal Reserve have not changed their hawkish stance. Governor Brainard commented that the Fed’s top priority is to combat inflation and it will implement a policy of neutrality “expeditiously.” Brainard also stated that Russia’s incursion into Ukraine raises inflation concerns, and if it continues, those concerns will only grow as the supply chain troubles worsen. The governor noted that, with this year’s fiscal impact, financial circumstances are already tightening, which will reduce consumption. The dollar is holding its ground, helped [..]

Daily Market Comment – Dollar wavers as inflation optimism overshadowed by Ukraine ‘dead-end’

Posted on April 13, 2022 at 9:04 am GMT

Dollar and Treasury yields see-saw after miss in US core inflation rate Euro under renewed pressure after Putin dashes hopes of peace, stocks mixed RBNZ first to hike by 50 bps, BoC likely to follow US inflation may be peaking, but risk-on tone falters quickly A glimmer of hope that the relentless rise in American consumer prices may be slowing lifted the market mood on Tuesday, sending Treasury yields lower and Wall Street higher. But the optimism didn’t last long [..]

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