All Articles Tagged - GBPUSD

Higher market volatility led by yen, gold and equities – Volatility Watch

Posted on July 16, 2024 at 6:58 am GMT

Euro/dollar volatility remains low despite weekend’s events Volatility in commodities jumps, apart from oil Stock indices experience stronger volatility, decoupling from Bitcoin Euro/dollar volatility remains very low despite last week’s weaker CPI report and the weekend’s gun attack on the Republican Presidential candidate. On the flip side, volatility in yen crosses has increased considerably as the BoJ is rumoured to have intervened last week in dollar/yen, ahead of the end-July BoJ gathering. In the meantime, volatility in gold has jumped to the highest level of the [..]

Weekly Technical Outlook – EURUSD, GBPUSD, Gold

Posted on July 15, 2024 at 1:23 pm GMT

EURUSD tests June’s peak as ECB rate decision looms GBPUSD pauses impressive rally near 1.3000 ahead of CPI data Gold resumes weak momentum after closing above 2,400 US retail sales –> Gold It was a shocking weekend of a failed assassination attempt against Donald Trump, which caused a heated moment in the US political landscape. Despite that, the US dollar gained only moderately on safety bits, leading the non-yielding gold slightly to the downside as Biden and Trump called for [..]

Bullish pound eyes $1.30 ahead of UK inflation test – Preview

Posted on July 15, 2024 at 1:13 pm GMT

June CPI numbers the highlight of this week’s UK data flurry Could the Bank of England cut interest rates next month? Pound undeterred as it extends July gains Job stats and retail sales to follow Wednesday’s CPI report (06:00 GMT) On target Inflation in the UK peaked much higher than in other major economies during the height of the energy crisis in 2022. Logic would therefore dictate that it would take longer to come down, and that is exactly what [..]

A September Fed rate cut could lead to an easing spree during end-2024 – Special Report

Posted on July 12, 2024 at 10:45 am GMT

Market prices in at least two rate cuts from Fed ECB, BoE expected to follow suit despite divergent economic conditions SNB and BoC could ease further; RBNZ possibly close to a summer rate cut BoJ and RBA could surprise with rate hikes during 2024 We are halfway into 2024 and the countdown for this year’s key event, the US presidential election, has already started. With geopolitics taking a backseat lately, despite both the Ukrainian-Russian and Israeli-Hamas conflicts remaining unresolved, political risk is [..]

Week Ahead – ECB set to hold rates, plethora of data on the way

Posted on July 12, 2024 at 10:03 am GMT

ECB is not expected to cut in July but will it signal one for next meeting? Retail sales will be the main highlight in the United States UK CPI report will be vital for BoE’s August decision China GDP data to kickstart busy week ECB meets amid sticky inflation The European Central Bank concludes its two-day policy meeting on Thursday but no change in interest rates is anticipated after trimming them by 25 basis points at last month’s gathering. The [..]

Technical Analysis – GBPUSD battles with 1.2860-1.2890 area

Posted on July 11, 2024 at 11:53 am GMT

GBPUSD shows some improvement in near term 200-week SMA lies near the current high GBPUSD is facing a notable bullish movement after the bounce off the 1.2610 support level, challenging again the 1.2860-1.2890 area, where the 200-week simple moving average (SMA) also lies. According to technical oscillators, the stochastic is heading upwards above the 80 level, creating a bullish crossover within its %K and %D lines. The RSI is flirting with the 70 level with strong momentum. If steeper increases [..]

Market Comment – Wounded dollar awaits inflation numbers

Posted on July 11, 2024 at 7:57 am GMT

Powell’s testimony dents the dollar US CPI data could deepen the wounds Pound gains as BoE’s Pill dampens August cut bets Wall Street at new highs, gold gains as well Dollar softens ahead of CPI data The US dollar drifted south against most of its major peers on Wednesday, gaining some ground only against the yen, the franc, and the kiwi. What may have allowed dollar traders to maintain their short positions was Powell’s testimony before the House Financial Services [..]

UK data eyed as pound celebrates Labour win – Preview

Posted on July 10, 2024 at 12:16 pm GMT

Monthly GDP and production figures for June on tap Strong data might hurt August rate cut expectations Pound flirts with $1.28 ahead of Thursday’s release (06:00 GMT) Uptick in GDP expected The UK economy got off to a solid start this year, emerging strongly from a technical recession in the second half of 2023. GDP grew by an impressive 0.7% quarter-on-quarter in the January-March period. But growth came to a halt in April and investors will be watching the May [..]

Technical Analysis – GBPUSD advances towards 2024 highs

Posted on July 9, 2024 at 8:06 am GMT

GBPUSD rebounds from its 50-day SMA The price jumps to its highest since June 12 Momentum indicators are tilted to the upside GBPUSD has been slowly gaining ground following its bounce off the 50-day simple moving average (SMA) in late June. Moreover, the pair has entered a range that has previously rejected further advances during the past year, thus traders should be careful not to get overly optimistic. Should upside pressures persist, the price may clear the 1.2816-1.2859 range, defined by the [..]

Lower FX volatility as equities appear agitated – Volatility Watch

Posted on July 9, 2024 at 6:51 am GMT

Euro/dollar volatility drops aggressively Volatility in commodities increases a tad, apart from oil S&P 500 and Nikkei 225 indices’ volatility jumps Euro/dollar volatility has eased further over the past week as the market is feeling more relaxed after Le Pen’s far-right party failed spectacularly to win the highest number of seats in the second round of the French parliamentary election. Similarly, volatility in yen crosses has dropped a bit as the weaker US data prints have provided some breathing space to the ailing [..]

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