Pound falls as May backs down

EUR/USD is holding its retreat from 10-week highs near 1.1750 in the European session on Friday, capped by a modest rebound in the US Dollar.  The potential downside for the pair might be limited amid expectations of divergent Fed-ECB monetary policy outlooks. Fedspeak is awaited, 

GBP/USD is keeping its range trade intact below 1.3400 in European trading on Friday. The UK GDP unexpectedly fell by 0.1% in October vs. a 0.1% growth expected, while the Manufacturing Production rose 0.5% over the month in the same period, missing the estimated 1% increase. Mixed UK data have little to no impact on the Pound Sterling. 

Gold remains on the back foot through the Asian session on Friday, though it lacks follow-through and trades near its highest level since October 21, touched the previous day. A generally positive tone around the equity markets undermines demand for traditional safe-haven assets and acts as a headwind for the commodity.

Bitcoin and Ethereum are nearing the key resistance levels at the time of writing on Friday, and a successful breakout could open the door for a fresh rally. Meanwhile, Ripple is stabilizing around a crucial support zone, hinting at a potential rebound if buyers maintain control.

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Solana (SOL) price is trading below $130 at the time of writing on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.