GBP is outperforming on crosses as BoE repricing shifts with Fed – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is trading flat against the US Dollar (USD) and outperforming all of the G10 currencies on the crosses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP is flat vs. USD

"The outlook for relative central bank policy is offering some stability for GBP, given the softening of easing expectations for both the BoE and Fed. Domestic releases have been limited, and fiscal concerns remain elevated as markets eye the softening of demand for gilts."

"The technical picture has shifted bearishly following losses on Wednesday and Thursday. The 50 day MA (1.3468) has been clearly broken, and the GBP is threatening a break of the early September low just above 1.33. We look to a near-term range bound between 1.3320 and 1.3420."

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FXStreet Insights Team

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EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.