GBP outperforming with marginal gain – Scotiabank

FXStreet Insights Team FXStreet

Pound Sterling (GBP) is up a modest 0.2% in quiet trade, outperforming most of the G10 currencies heading into Monday’s NA session, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CBI sentiment better than expected

"The CBI sentiment figures were slightly better than expected but still negative overall and at the lower end of their recent historical ranges. There are no major data releases scheduled ahead of the May 8 Bank of England policy decision."

"Markets are pricing 26.5bpts of easing (more than one full cut) and pricing just over 90bpts of cumulative easing by December. The BoE will also release its lates inflation report, along with a fresh set of forecasts that will provide some insight into the Bank’s views on the economic impact of US tariffs."

"GBP/USD’s bullish trend is intact, and looks set be maintained despite last week’s pullback. The RSI is bullish and hovering well above 50 in the mid-60s. Near-term support is expected in the mid/lower-1.32s and resistance is expected above 1.3400."

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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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.