GBP futures: extra gains unlikely near term

Pablo Piovano FXStreet

In light of CME Group’s preliminary data for GBP futures markets, open interest decreased by more than 4.4K contracts on Monday - recording the third consecutive drop – vs. Friday’s 200,472 contracts. On the opposite side, volume rose by more than 12.1K contracts after two consecutive drops.

GBP/USD remains under pressure below 1.4030/70

Cable is struggling for direction today after three sessions in a row with gains. Shrinking open interest against the backdrop of declining volume are removing tailwinds from the current uptick in prices, leaving the outlook on GBP/USD fragile as long as it trades below the 1.4070/30 band, where converge February 26 high and the resistance line off 2018 tops.

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.

Japanese Yen weakens to two-year lows, targets 162.00

USD/JPY extends its advance well north of the 161.00 barrier on Thursday, always on the back of the continuation of the US Dollar's post-Fed rebound and despite warnings from the BoJ of a potential intervention at any time. Next on the upside for spot comes the July 2024 peak in levels just shy of 162.00 the figure.

AUD/USD trims gains, challenges 0.7000

AUD/USD now alternates gains with losses just above the key 0.7000 level ahead of the opening bell in Asia. The pair clinches its third consecutive daily retracement, always on the back of the persistent move higher in the Greenback, particularly following the Fed’s hawkish hold on Wednesday.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

XRP vulnerable below key EMA resistance levels

Ripple (XRP) ticks down below $1.20 with short-term support at $1.16 intact at the time of writing on Thursday. An early-week rally was rejected at $1.28, weighing on sentiment as traders broadly de-risked.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

The next big AI trade may not be about chips or software

Artificial intelligence has already created some of the biggest winners in modern market history. Chipmakers have surged, data centre construction is booming, and electricity demand forecasts are changing globally.