European elections results published on Sunday are most likely to cause torments on the marketplace while market holidays in the US and the UK on Monday should have an impact on liquidity. The recent bounce in GBP/USD from 1.2657 low is above all a technical correction since the outlook for British pound remains gloomy. The results from EU elections, PM May’s resignation announcement and dragging trade discords between China and the US stay major concerns.

Theresa May plan to submit a fourth vote on its Withdrawal Agreement to UK MPs is fading as investors are anticipating her departure in 7 June 2019, opening the door to supporters of a harder Brexit deal. Boris Johnson who initiated the Brexit campaign in 2016, is perceived as favorite in the 6-weeks run that should start following US President Donald Trump visit in the UK in early June 2019. Furthermore, with the support of British voters to Nigel Farage newly formed Brexit Party, the turmoil has probably just begun. Considering upcoming events, we consider the recent up-move in GBP/USD as unjustified and continue to favor further downside risk. The recent releases of April retail sales of 0% (prior: 1.10%) and ex. auto fuel 4.90% (prior: 6.20%) is not particularly bright either.


 

Stay on top of the markets with Swissquote’s News & Analysis

 


Currently trading at 1.2689 (-0.51 year-to-date), GBP/USD is heading along major support at 1.2607 (02/01/2019 low).

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD falls below 1.1250 as US retail sales beat expectations

EUR/USD is trading below 1.1250, extending its slide. US retail sales beat expectations with the control group rising by 0.5% in May on top of upward revisions. US-Sino trade tensions are in play.

EUR/USD News

GBP/USD falls towards 1.2600 after US retail sales

GBP/USD is trading closer to 1.2600, around the weekly lows. US retail sales beat expectations and trade tensions also boost the USD. The UK is bracing for Boris Johnson to become PM. US consumer confidence is next.

GBP/USD News

USD/JPY climbs to mid-108s as 10-year US T-bond yield erases losses

Today's upbeat macroeconomic data releases from the United States provided a boost to the greenback and allowed the USD/JPY pair to advance to a session top of 108.50.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more

Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Majors

Cryptocurrencies

Signatures