GBP/USD: Expected to trade in a range between 1.3460 and 1.3530 – UOB Group

FXStreet Insights Team FXStreet

Pound Sterling (GBP) is expected to trade in a range between 1.3460 and 1.3530. In the longer run, the current price movements are likely part of a broad range between 1.3430 and 1.3595, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a broad range

24-HOUR VIEW: "In the NY session last Friday, GBP jumped to a high of 1.3554 and then pulled back sharply to close at 1.3507 (+0.52%). The sharp pullback has slowed some of the build-up in upward momentum, and GBP is unlikely to rise further. Today, we expect GBP to trade in a range, most likely between 1.3460 and 1.3530."

1-3 WEEKS VIEW: "GBP fell sharply last Tuesday. In our latest update from Wednesday (03 Sep, spot at 1.3390), we indicated that 'while the sharp drop appears excessive, there is room for GBP to weaken further to 1.3305, potentially testing the significant support level near 1.3270.' We added, 'to sustain the downward momentum, GBP must hold below 1.3490.' Our assessments were incorrect, as after dropping to a low of 1.3334, GBP rebounded, and last Friday, it soared to a high of 1.3554. However, coming off the previous steep decline, the sharp rebound did not translate into a meaningful build-up in upward momentum. Overall, we view the current price movements as part of a broad range, likely between 1.3430 and 1.3595."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

British Pound weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD declines as US Dollar gains on Middle East uncertainty

EUR/USD remains subdued for the third successive day, trading around 1.1500 during the Asian hours on Tuesday. The pair continues to hold losses as the US Dollar finds support from ongoing uncertainty in the Middle East, despite lingering hopes for a diplomatic breakthrough between the United States and Iran.

Gold lacks bullish conviction amid US-Iran impasse, ahead of US jobs data

Gold is attempting a tepid bounce around $4,050 in Asian trading on Tuesday, stalling a two-day decline amid looming US-Iran risks, as markets brace for a slew of US jobs reports due later this week. US JOLTS Job Openings Survey is in focus on Tuesday.

Morgan Stanley cuts Circle price target to $38 as stablecoin growth stirs concerns

Circle (CRCL) shares came under pressure on Monday after Morgan Stanley downgraded the company to underweight and sharply cut its price target. Morgan Stanley lowered its price target for Circle to $38 from $106, citing concerns over slower growth in USDC circulation and increasing pressure on the stablecoin issuer's core revenue model.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.