GBP: Sterling weighed down by Boris Johnson' plans

Sterling fell significantly on Monday, apparently weighed down by plans by British Prime Minister Boris Johnson to double public investment.

The sell-off was particularly evident against the Euro, as the Euro was slightly lifted by better than expected Eurozone and German CPI confidence indicators. Other developments also brought the Swiss Franc higher. On the other hand, the Yen and Dollar followed in the footsteps of the Pound as the weakest on Monday.

Technically, EURGBP shows a very clear upward acceleration. A sustained break from the 0.9182 level would open the way back to the average high of +/- 0.9300 with a continued peak price of 0.9498. Last week's high price of 0.9099 (50.0% FR level) will be a strong support. GBPCHF passed the 50.0% retracement from the low price of 1.1630 after breaking out from the previous low at 1.1728. Advanced support is at the 1.1545 level (61.8% FR), but you need to pay attention to previous low prices. If the movement continues, it will open the path for a test of 1.1115.

The Eurozone Economic Sentiment indicator rose to 75.7 in June, compared to 67.5, but missed expectations of 80.0. However, an increase of +2.2pts is still the largest increase m/m. Also, the Labour Expectations Indicator resumed a steep recovery last month and jumped from 70.1 to 82.8. Depending on the sector, employment plans have so far recovered about 40% to 60% of the losses recorded in March and April. Meanwhile, German CPI rose 0.6% m/m in June, above expectations of 0.3% m/m. For the annual measure, CPI increased to 0.9% y/y, up from 0.6% y/y and beyond expectations of 0.6% y/y.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.