GBP/USD enters a consolidation phase around 1.28 mark

Haresh Menghani FXStreet

The GBP/USD pair traded with mild positive bias and moved further beyond the 1.2800 handle, closer to last week's swing high resistance near 1.2815-20 region.

As the much awaited Brexit talks gets underway, receding fears of a 'hard Brexit', especially after the disastrous UK snap election result, coupled with hawkish BoE vote was seen lending some support to the British Pound.

• UK: Focus on Brexit negotiations this week – BBH

Adding to this, a softer tone around the US Treasury bond yields, which failed to provide any fresh bullish impetus to the US Dollar, remained supportive of the bid tone surrounding the major.

It, however, remains to be seen if the pair is able to build on the up-move or runs through fresh offers at higher level, and reaffirm broader near-term trading range, amid absent fundamental drivers in-terms of any major market moving economic releases.

This week, investors will look forward to a slew of speeches from influential FOMC members to back prospects of a faster Fed rate-tightening cycle through 2017, which should influence sentiment surrounding the buck and eventually provide some short-term trading impetus.

• GBP expected to trade in a jittery fashion - Rabobank

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The 200 EMA in the mentioned level stands at 1.2820, the level to break to confirm additional gains for this Monday, up to the 1.2850/60 region. Below 1.2810 on the other hand, the pair has scope to test Friday's low of 1.2751, with a directional breakout being unlikely for this first day of the week."

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.