GBP/USD approaches 1.4000, third day of losses

Spot continued to correct lower from 1-month highs.
Pound also lost ground vs EUR, JPY, and CHF.

Matías Salord FXStreet

The GBP/USD was headed to the third daily loss in-a-row. It continued to move with a bearish bias and during the US session printed a fresh weekly low at 1.4009. Near the end of the day, it was hovering around 1.4020/25, more than 200 pips below Tuesday’s high.

The US dollar posted mix results. It gained versus the euro and the pound but lost ground against the yen and commodity currencies. It failed to benefit from data. Core PCE rose 0.4% in February (1.6% y/y), as expected, Personal Income (+0.4%) and Personal Spending (+0.2%) also showed numbers in line with market consensus. On the negative front, the Chicago PMI dropped from 61.9 to 57.4 (vs 62.0) while the Consumer Sentiment Index (University of Michigan) declined from 102.0 to 101.4. The last numbers limited US strength.

Cable continues to correct lower. On Monday reached at 1.4243 the highest level since February 2. It tested the highs on Tuesday but failed and started to move to the downside. The move accelerated on Wednesday and continued at a lower rate on Thursday.

With holidays and no relevant economic data to be released on Friday, volatility is likely to remain low ahead of the weekend.

GBP/USD Key Levels

To the downside two key support levels are seen for the pound below the psychological 1.4000: 1.3980, the 20-day moving average and then 1.3910/20, the uptrend line from November lows. On the opposite direction, immediate resistance might lie at 1.4080 followed by 1.4145 and 1.4170/75.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.