GBP fragile, looks to Brexit – Danske Bank

Pablo Piovano FXStreet

Analyst at Danske Bank Aila Mihr assessed the recent performance of GBP and the prospects for EUR/GBP in the next months.

Key Quotes

“GBP is likely to remain volatile and very sensitive to Brexit-related news ahead of the EU Summit next week. The market’s expectations of further progress in negotiations have eased slightly, but the cross would still spike higher if EU leaders decide that there has not been sufficient progress made to proceed to the second face of negotiations”.

“In case of positive surprises, EUR/GBP could decline and test the key support level at 0.8746. All in all, however, we still see the cross within the 0.8650-0.90 range in the coming months as it is still too early in the negotiations to reprice Brexit risks significantly”.

‘In particular, a reassurance that a cliff edge Brexit is avoided matters more for the GBP. Hence, longer term, the case for a lower EUR/GBP in 2018 remains intact as Brexit uncertainty clarifies”.

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 softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold stays firm above $5,150 as Trump's delivers State of the Union speech

Gold finds fresh demand and regains the $5,150 level following the previous day's pullback from the monthly peak as traders assess Trump's State of the Union address. Trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion.

Hyperliquid registers mild gains following CoinShares' ETP launch

Hyperliquid registered a 3% gain on Tuesday after CoinShares announced the launch of its Physical Hyperliquid Staking exchange-traded product, offering investors exposure to the token's price and staking yields.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.