GBP/USD erases recovery gains after US economic releases

Haresh Menghani FXStreet

The GBP/USD pair erased upbeat UK retail sales-led gains to 1.2500 mark and has now turned neutral after US economic releases.

Currently trading around 1.2440 region, the pair lost its recovery momentum and turned neutral following the release of upbeat US macro data. According to the data released just a short while ago, US consumer inflation, as measured by CPI, ticked higher and came-in at 0.4% m-o-m. On the other hand, core CPI (excluding food & energy prices) fell short of consensus estimates but matched previous month's print showing 0.1% rise.

Meanwhile, data from US housing sector, building permits and housing starts surpassed expectations and witnessed a healthy growth for the month of October. Also, the weekly jobless claims for week ended Nov. 11 unexpectedly dropped to 235K as compared to previous week's 254K and reaffirmed the US labor market's underlying strength.

Today's US economic data reinforced market expectations that the Fed would eventually move towards raising interest rates in December and helped the overall US Dollar Index to pare early losses, leading to some selling pressure around the major.

Technical levels to watch

Sustained weakness back below 1.2450 level is likely to drag the pair back towards 1.2400 handle below which a fresh leg of weakness would turn the pair vulnerable to aim towards testing 1.2300 support area. On the upside, 1.2500 psychological mark is likely to provide immediate resistance, which if cleared might continue boosting the pair in the near-term towards testing 50-day SMA important resistance near 1.2595 region.

To learn more about this topic, check our video analysis

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 climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.