GBP finds bargain hunters on weakness to near 1.30 – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) continues to draw firm support on softness through the low 1.30s and has rebounded quite firmly from the intraday low again today, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP is trying to bottom out

“UK data showed only moderate progress on elevated wages (Average Weekly Earnings dipped to 3.8% in August from an upwardly revised 4.1%). While jobless claims rose a little more than expected. Swaps pricing continue to suggest a 25bps cut by the BoE in November is all but a done deal though.”

“GBP price action is showing some signs of trying to bottom out, at least in the short run. The intraday chart suggests a “rounded low” base may be developing as bargain-hunters take advantage of GBP dips to the low 1.30s. Solid demand off the European low suggests a firm intraday base at least at 1.3030/35.”

“Resistance is 1.3115 and 1.3130; gains through the latter may add to short-term upward momentum.”

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.

EUR/USD weakens below 1.1650 as strong US data boosts Fed hold outlook

EUR/USD extends its losses for the third consecutive session, trading around 1.1640 during the Asian hours on Thursday. The pair loses ground as the US Dollar advances as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.

GBP/USD holds above 1.3400 after UK GDP data

GBP/USD holds above 1.3400 in European trading, fading a spike to near 1.3450. The pair jumped on the upbeat UK growth and industrial data but failed to hold the uptick amid a broadly firmer US Dollar. The focus now turns to the mid-tier US data releases for further directives.

Gold trades near $4,600 after pulling back from record highs

Gold loses ground after hitting a fresh record high of $4,643 in the previous session, trading around $4,600 per troy ounce on Thursday. The non-interest-bearing Gold lost ground as a stronger-than-expected United States Producer Price Index and Retail Sales, along with last week’s easing Unemployment Rate, reinforced the case for the US Federal Reserve to keep interest rates on hold for the coming months.