GBP flat ahead of data later this week – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is entering Wednesday’s NA session with a marginal gain vs. the USD as it consolidates in a tight range just above 1.3500, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Fundamentals remain supportive

"There have been no fundamental releases and this week’s highlights remain the trade and industrial production data scheduled for Friday. Fundamentals remain supportive for the pound as UK-US yield spreads push to fresh highs and sentiment is confirming as the options market reveals a positive shift in the price of protection against GBP risk."

"The technical picture remains bullish following this week’s break of descending resistance drawn from the summer highs. Momentum is confirming, with an RSI in the mid-50s, and this week’s gains are threatening a push to levels last seen in early July. We see no major resistance ahead of 1.3750 and look to a near-term range bound between 1.3500 and 1.3600."

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 struggles to build on recent rebound, holds above 1.1550

EUR/USD trades marginally lower on the day but holds above 1.1550 in the American session, following Thursday's rebound. The pair holds near its intraday high as the US Dollar remains pressured by hopes the Middle East conflict will soon come to an end.

GBP/USD hovers around 1.3400 as investors await war clarity

GBP/USD remains near its daily open, not far from 1.3400, in the second half of Friday's session. The US Dollar lost its previous intraday strength and weakens as investors await clarity on the US-Iran war.

Gold stabilizes above $4,200 as wait-and-see continues

After rising more than 3% on Thursday, Gold (XAU/USD) stabilized around the $4,200 mark in the American session on Friday. The US dollar seesaws between gains and losses, but remains within familiar levels as investors remain skeptical yet hopeful about a resolution to the Middle East conflict.

Week ahead: Central bank barrage ahead: Fed, BoJ, RBA, SNB and BoE in focus

The US dollar outperformed most of its major counterparts this week, with investors remaining convinced that the Fed may need to press the rate hike button before the end of this year. Fed hike bets were significantly bolstered after the US jobs report for May came in much stronger than expected, with nonfarm payrolls rising to 172k and confounding expectations of a much more modest 85k gain.

SpaceX launches 24% higher at Friday debut

Space Exploration Technologies (SPCX), aka SpaceX, zoomed 24% higher soon after the start of its first IPO trading day on Friday. Shares of the rocket and artificial intelligence (AI) company founded by Elon Musk began trading at about 11:46 am EST and quickly gained speed.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.