EUR/GBP keeps mild red after UK services PMI

Haresh Menghani FXStreet

The EUR/GBP cross failed to gain fresh traction and halted its recovery move from the lowest level since July 22 following the release of UK services PMI.

Currently trading with mild bearish bias, around 0.8360 region, the cross struggled to extend its recovery after UK services PMI print for the month of November surpassed expectations and came-in at 55.2 as compared to 54.2 expected and 54.5 recorded in the previous month.

The cross, however, remained over 60-pips off multi-month lows touched during early Asian session as market seems to have digested early jitters in wake of a 'NO' vote victory in Sunday's Italian referendum on constitutional reforms.

Investors will remain focused on any fresh news / developments surrounding the Italian referendum ahead of this week's key ECB meeting on Thursday.

Technical levels to watch

Renewed weakness below 0.8335 region (Sept. 6 low) is likely to drag the cross back towards 0.8300 handle, which if broken has the potential to continue dragging the cross further towards 0.8250 support area (July 14 low). On the upside, recovery momentum above session peak resistance near 0.8385 is likely to boost the pair beyond 0.8400 handle towards its next major hurdle near 0.8460 region.

Sell 60%

Buy 40%

Avg Sell Price 0.8583

Avg Buy Price 0.8532

Liquidity Distribution

Author

Haresh Menghani

FXStreet

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

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.