EUR/GBP sell strength beyond 0.88 – Danske bank

Pablo Piovano FXStreet

Chief Analyst at Danske Bank Arne Rasmussen, recommended selling the European cross on occasional upticks beyond the key 0.8800 hurdle.

Key Quotes

“EUR/GBP has stabilised after last week’s rally, which was ignited by Mark Carney’s comments on the market pricing of a rate hike in May”.

“GBP may have lost momentum after a period of strong performance since the beginning of March, but we do not think that GBP has lost its shine. We still expect the BoE to hike in May, which is now only priced with a 50/50 probability, and given the relatively subdued pricing of future BoE rate hikes (first full 25bp hike priced in October), we see room for GBP appreciation both in the short term and longer term”.

“Investors are still stretched long GBP according to the IMM, which is a warning light for long GBP. Note however that the IMM data was collected on Tuesday and some GBP longs clearly have been flushed out after since Carney’s comments Thursday night. Hence, from a risk reward, we would consider selling EUR/GBP if the cross bounces above 0.88”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority in the United Kingdom is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.