EUR/GBP to tick back below the 0.87 level in the weeks ahead – Rabobank

FXStreet Insights Team FXStreet

Economists at Rabobank analyze GBP outlook against USD and EUR.

Potential for further downside risks to Cable

In view of downside risks to global growth, we expect the USD to remain well supported in the coming months as subdued levels of risk appetite underpin safe-haven assets. This suggests potential for further downside risks to Cable.

However, we see scope for EUR/GBP to move back below the 0.87 level on the back of weak German economic data and our house view that the Eurozone may already be in a technical recession.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

USD/JPY extends losses below 158.00 on hawkish BoJ repricing

USD/JPY extends losses below 158.00 in Asian trading on Thursday. Asian 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 looks to reclaim $4,450 on the road to recovery

Gold is building on its recovery from four-week troughs below $4,300, with buying aiming to recapture the key near-term resistance at around $4,450 early Thursday. Gold buyers seem to be back in the game after the daily technical setup turned in their favor after flashing bearish signals earlier in the week.

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).

US President Donald Trump: Renewed campaign against Iran will not continue for too long

US President Donald Trump said that while the US is prepared to strike Iran again at any time, he doesn’t expect the renewed fighting to last “too long,” Reuters reported on Wednesday. Iran’s Supreme Leader Mojtaba Khamenei said that Iran’s armed forces have “unforgettable lessons” in store for the US in his first message since fighting resumed after a month of relative calm.

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.