EUR/GBP bounces off 0.89 mark, still in red for second straight session

Haresh Menghani FXStreet

The EUR/GBP cross traded with a bearish bias for the second consecutive session on Monday but has managed to find some support near the 0.8900 handle.

The cross extended Friday's sharp rejection slide from the key 0.90 psychological mark and was being weighed down by Spanish political uncertainly. Catalonian independence was seen taking tool of the shared currency and has been one of the key factors weighing on the cross.

• Spain to face possible slowdown in the economy and fiscal slippage - HSBC

However, persistent USD demand kept the GBP/USD major on the back-foot and helped limit deeper losses, with the cross rebounding around 15-pips from session lows to currently trade around the 0.8915 region.

Traders would now take cues from the release of EU consumer confidence index for the month of Oct. Meanwhile, any fresh political news coming out of Spain would continue to infuse some volatility across Euro crosses and provide short-term trading opportunities ahead of the UK GDP figures on Wednesday and the highly anticipated ECB monetary policy decision on Thursday.

Technical levels to watch

On a sustained break below the 0.8900 handle, the cross is likely to accelerate the slide towards 0.8855 strong horizontal level with some intermediate support near the 0.8875 region.

Conversely, a sustained recovery back above 0.8925 level has the potential to lift the cross back towards 0.8965 resistance en-route the 0.9000 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.