GBP/USD: renewed corrective move on Cable [Video]

Richard Perry Independent Analyst

GBP/USD

As the Fed and the Bank of England are both set to announce monetary policy over the next 36 hours, there has been a renewed corrective move on Cable. Sterling woes seem to be a driver, but also dollar strength too. This has pulled Cable back towards the support band $1.2900/$1.3000 once more. However, this is a range where recent lows have been forming (with $1.2950/$1.2960 being lows of the past couple of weeks). Yesterday’s rebound off $1.2975 to close back above $1.3000 once more shows that there is still an appetite to defend the $1.2900/$1.3000 support band. However, there is still a negative bias that comes with four successive bearish candles in a row. Momentum indicators are sliding again (Stochastics especially). This downside momentum would really begin to ramp up on an initial break of $1.2950 and take on a whole new bearish tilt below $1.2900. This morning’s consolidation comes ahead of the Fed and may mean that we will have to wait for the two central banks for direction. Initial resistance $1.3040/$1.3065.

Author

Richard Perry

Independent Analyst

Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.

USD/JPY extends sell-off below 157.00 on hawkish BoJ repricing

USD/JPY extends sell-off below 157.00 in European trading on Thursday. Traders react negatively to the weak US ADP report, smashing the US Dollar across the board and exerting renewed selling pressure on the pair. Meanwhile, hawkish BoJ expectations and intervention risks continue to lend support to the Japanese Yen, rendering it negative for the major.

AUD/USD ranges above 0.7150 despite upbeat Chinese PMI

AUD/USD struggles to capitalize on the previous day's bounce from a nearly two-week low and ranges above 0.7150 in Asia on Thursday, as dismal Australian trade data counter upbeat China's RatingDog Services PMI. However, the pair's upside remains in check as the US Dollar stalls the weak ADP report-led slide amid escalating US-Iran tensions and firming September Fed rate-hike bets.

Gold sticks to gains below $4,450 amid weaker USD

Gold maintains its bid tone heading into the European session, though it remains below $4,450 amid mixed fundamental cues. Sliding US bond yields and Wednesday's soft US ADP report weigh on the US Dollar, assisting the commodity build on the previous day's goodish recovery from a nearly four-week low. That said, firming US Federal Reserve rate-hike expectations and inflation risks stemming from higher energy prices could act as a tailwind for US bond yields.

XRP defends key support, XLM awaits breakout as derivatives strengthen

Ripple (XRP) and Stellar (XLM) show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages (EMAs).

Ripple defends key support; Stellar awaits breakout as derivatives strengthen

Ripple and Stellar show divergent technical outlooks as traders assess whether the recent weakness could give way to a recovery. XRP is finding support and defining a key support zone, while XLM slips below a cluster of Exponential Moving Averages.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.