- Upbeat Trump’s talks on trade keep the downside cushioned.
- Tory and Labour splits set to bring cross-party Brexit talks to an end.
- Focus remains on trade headlines, Brexit talks, UK jobs data.
The GBP/USD pair continues to trade in a 30-pips narrow range heading into early European trading, struggling to take on the recovery above the 1.2970 level amid the renewed US-China trade optimism and cross-party Brexit talks stalemate.
The spot managed to find support once again at the two-week lows of 1.2943 in early Asia after the risk currencies got a fresh lift from positive comments by the US President Trump on the US-China trade talks. Trump said that he feels the Chinese trade negotiations will be successful.
However, the bounce remains limited by ongoing uncertainty around the Brexit issue, with the cross-party Brexit talks going nowhere and denting the sentiment around the GBP. According to the latest report by the Sky News, “Theresa May and her bitterly divided Cabinet are meeting to decide whether to axe cross-party Brexit talks with Labour that have failed to achieve a breakthrough in six weeks.”
Meanwhile, markets also refrain from buying the latest uptick, as they remain wary ahead of the UK labor market report due later today at 0830 GMT. “For the three months to March, the ILO unemployment rate is expected to remain steady at 3.9%, while average earnings for the same period are seen ticking modestly lower from the previous month, but holding firmly above 3.0%, “FXStreet’s Chief Analyst Valeria Bednarik notes.
On Tuesday, the Cable drowned to two-week lows sub-1.2950 levels after risk aversion intensified on the Chinese retaliation while the Brexit deadlock also accentuated the pain in the pound. China announced its own broadside of tariffs on $60 billion worth of US imports in retaliation to the Trump administration raising tariffs on $200 billion of Chinese imports.
Looking ahead, the UK jobs data may have limited impact on the spot, as the overall market sentiment will continue to remain the main driver amid trade risks and Brexit jitters.
GBP/USD Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.