GBP/USD back above 1.3100, near 2017 highs

Matías Salord FXStreet

The pound gained momentum against the US dollar during the American session. The greenback lost strength after the US GDP report.

GBP/USD back above 1.3100

The pair has been moving all day with a bullish bias, moving at a slow pace. After the beginning of the American session rose further and peaked recently at 1.3136. Currently, it trades at 1.3110/20, up 50 pips for the day.

Cable is near yesterday’s highs that are located around 1.3155. At the moment is testing the 1.3120/30 resistance, a consolidation on top could clear the way for a test of 1.3155. On the downside, below 1.3090 the short-term momentum is likely to shift to the downside.

Week ahead: after Fed, the turn of BoE and NFP

The key event of the week was the Federal Reserve decision. As expected, the FOMC kept rates unchanged and offered signals that the normalization program of the balance sheet could start “relatively soon”. The greenback lost ground across the board after the statement and helped GBP/USD consolidate gains. Next week, the key economic number in the US will be the US official employment report with the non-farm payroll data.

In the UK, eyes point toward Thursday. That day, the Bank of England will announce its decision on rates and will present the Inflation Report. After years of MPC meetings being a non-event for markets, since the Brexit referendum, the situation changed dramatically.

Most analysts expect no change in rates. The latest comments from Carney and BoE officials, showed diverging views, increasing speculations about the trajectory of monetary policy in the UK. “At this meeting, we expect the BoE to vote 6-2 in favor of keeping the Bank Rate unchanged against 5-3 on the previous occasion. The reason is mainly because Kristin Forbes, a known hawk voting for a hike, has left the committee and we do not think the new member will vote against Carney at the first meeting”, said analysts at Danske Bank.

Bank of England to vote 6-2 to keep rate unchanged - Danske Bank

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.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.