GBP/USD: Declining bets for a move to 1.2550 – UOB

Pablo Piovano FXStreet

Cable keeps the positive view unchanged for the time being, although a test of the mid-1.2500s looks unlikely for the time being, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for GBP to ‘edge above Monday’s high of 1.2484’ did not materialize as it traded in a relatively narrow range between 1.2331 and 1.2450. The price action offers no fresh clues and GBP could trade sideways between 1.2300 and 1.2490 for now.”

Next 1-3 weeks: “After rising quickly to 1.2484 last Friday (27 Mar), GBP has not been able to make much headway on the upside as it traded in a relatively quiet manner over the last few days. For now, we are holding on to our view that the ‘current recovery has scope to extend higher but prospect for a move above 1.2550 is not high’. To look at it another way, there is chance for GBP to test 1.2550 first before a pull-back can be expected. On the downside, a breach of 1.2200 (‘strong support’ previously at 1.2100) would indicate the current upward pressure has dissipated.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.