GBP/USD continues to pout, buyers remain silenced ahead of the UK's GDP figures

Sterling continues to hang on the downside, preliminary GDP on the docket for Friday.
Bulls look hampered on the sidelines as the GBP/USD continues to sink to new lows.

Joshua Gibson FXStreet

The GBP/USD sees itself cycling near 1.3375 heading into Friday's London markets after managing to pull back somewhat from a six-month low made earlier this week. The Sterling has been hammered by drooping economic figures that saw the Bank of England forced to walk back an expected rate hike in May, and today's quarterly GDP figures will see traders hoping for some good news.

The mild economic contraction that was expected in the first quarter of 2018 is continuing to extend into 2018's mid-point, and traders are hungry for some good news for a change. Friday's preliminary GDP figures for the first quarter, which drop at 08:30 GMT, are expected to hold the line, and the year-on-year GDP numbers are forecast at 1.2%, in-line with the previous figure. Meanwhile, Total Business Investment for the first quarter is seen contracting slightly, from the previous period's 0.3% to 0.2%.

Friday also sees a speech from the BoE's Mark Carney, which starts at 13:20 GMT. Carney will be speaking at the Society of Professional Economists' annual dinner in London, and traders are going to be listening in to try and filter out any tidbits about where the BoE could be heading looking forward.

Sentiment Extreme Drags GBP/USD Lower

GBP/USD levels to watch

The technical outlook for the Sterling remains on the bearish side, and as FXStreet's own Valeria Bednarik noted, "in the meantime, the short-term picture remains unchanged, with the risk skewed to the downside, given that in the 4 hours chart, the price is unable to advance beyond its 20 SMA, now around 1.3400, while technical indicators hold within bearish territory, the Momentum heading south after failing to overcome its mid-line, and the RSI hovering below its daily high and currently at 45."

Support levels: 1.3365 1.3330 1.3300

Resistance levels: 1.3420 1.3455 1.3490

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.