- Greenback extends losses on Friday, as equity prices continue to rally.
- US dollar hit by risk appetite and Fed rate cut expectations.
The GBP/USD pair rose further during the American session and printed a fresh daily high at 1.2568, slightly below the weekly top. The pair is near the 1.2570 resistance zone, consolidating weekly gains.
The move higher is being supported by a decline of the US Dollar across the board. The DXY is down 0.20%, below 97.00 and looking at weekly lows. Also, commodity and emerging market currencies are posting strong gains versus USD. In Wall Street, the DOW JONES is up 0.58% and the NASDAQ 0.45%.
Cable is consolidating weekly gains and a significant rebound from multi-month lows. It is still seen under pressure on long term charts and from a fundamental perspective by UK and Brexit uncertainty. Over the last few days, US Dollar weakness was a key driver. On Friday, not even higher-than-expected PPI numbers helped the dollar.
Levels to watch
“Initial resistance awaits at 1.2560 which was a swing low in May. Further up, 1.2605 was a low point in May and later capped GBP/USD in mid-June. It is followed by 1.2660 which provided support twice in June, and 1.2780 which was the high point in June”, explained Yohay Elam analyst at FXStreet.
FXStreet
According to him, support awaits at 1.2505 (June's low). “Next, we find 1.2480 which was a trough in early July. Critical support awaits at 1.2439 which was the flash crash low in January and also the low point in July – a double bottom. 1.2360 is the next level to watch and it dates back to April 2017.”
More 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 regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.