Morning briefing: GBP/USD gains momentum toward the 1.3800 level
|The DXY seems to be stuck in a very narrow range just above 96.75 and could have scope to rise to 97.75/98 while it holds. Euro has broken below our expected support at 1.1850 and could test 1.18-1.17 while the decline sustains. EURINR could continue to dip towards 107-106.50 while below 108. EURJPY and USDJPY look bullish for a slow rise to 184/186 and 155/156 respectively while above 181 and 153. USDCNY can rise to 6.92/95 while above 6.90, with crucial support still at 6.85. The Aussie can test 0.70/69 while below 0.7150 while the Pound needs to break past 1.37 to head toward 1.38+ levels, else can trade within the 1.37-1.35 region. USDINR could continue to remain sideways within 90.40-90.75 region for now.
The US Treasury yields remain stable now. There is room to fall more from here. The German yields stay lower after breaking below their support. While this break sustains, the yields can fall further. The 10Yr GoI is stable. There is limited downside from here as supports are available. We can expect the 10Yr GoI to reverse higher eventually going forward.
Dow is holding above support and can bounce towards 49800–50000 if it sustains. DAX remains weak and may fall further towards 24800–24500. Nifty has rebounded from 25350, but the broader 26000–25000 range may continue with a possible dip towards 25000. Nikkei has declined sharply and could extend losses towards 56200–56000. Shanghai is closed for the Lunar New Year holiday and will resume on 24-Feb-26.
Brent and WTI continue to move within their respective ranges of $70–$66 and $66–$62, indicating a lack of strong directional momentum for now. Gold remains vulnerable to a corrective decline towards $4900–$4800. Silver also maintains a bearish outlook with room to fall towards $70–$65. Copper has seen a rise but still appears prone to a pullback towards $5.70–$5.65 in the coming sessions. Natural Gas is holding above key support and may bounce towards $3.2–$3.4 in the near term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.