- GBP/USD drops to seven-day lows.
- UK’s new immigration plan, the Canada-styled deal with the EU spice-up the EU-UK tussle off-late.
- The US dollar remains on the front foot amid fresh risk-off, positive fundamentals.
- US Philadelphia Fed Manufacturing Survey, Chinese headlines will also be the key.
GBP/USD drops to 1.2910 while heading into the London open on Thursday. The EU-UK tussle over post-Brexit trade deal as well as broad US dollar strength recently dragged the quote to the lowest in seven days. The Cable traders will now focus on the January month UK Retail Sales data for immediate direction.
While the EU’s chief Brexit negotiator Michel Barnier turned down the UK’s signal for the Canada-style trade deal with the region, he already knew that Tories will stand ready to criticize the move. Additionally, the Britons defied the EU diplomat’s demand to return the Elgin Marbles in the post-Brexit trade deal. At home, the opposition is doing all they can to turn down the “clueless” Home Secretary Priti Patel’s latest immigration plan while the EU is in the tension of the budget ahead of the first EU summit post-Brexit.
Over the counter, the US Dollar manages to keep the gains as not only the shift in risk sentiment but comparatively upbeat fundamentals also please the greenback lovers. China’s latest coronavirus numbers again surprised markets based on the re-revised methodology. Though, this doesn’t stop downbeat comments from the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva and rating giant S&P.
It should also be noted that a rate cut from the People’s Bank of China (PBOC) and Aussie employment data have earlier favored the USD. Further, the US 10-year treasury yields and Asian stocks are back to the red after rising the previous day.
The UK Retail Sales, expected to rise 0.7% versus 0.9% prior, will be closely watched to confirm the latest bullish bias following positive prints of inflation and employment data. On the other hand, the US Philadelphia Fed will also be the key as traders might want to confirm the greenback’s strength amid the coronavirus contagion.
A 15-week-old rising trendline, around 1.2885, can act as the immediate support ahead of aiming the 50% Fibonacci retracement of the pair’s October-December 2019 upside, at 1.2855. On the upside, a clear break of 50-day SMA level of 1.3060 enables the buyers to aim for the monthly high near 1.3070. It’s worth mentioning that the 1.3000 psychological magnet offers the immediate upside barrier.
Additional important levels
|Today last price||1.2909|
|Today Daily Change||-15 pips|
|Today Daily Change %||-0.12%|
|Today daily open||1.2924|
|Previous Daily High||1.3024|
|Previous Daily Low||1.2907|
|Previous Weekly High||1.307|
|Previous Weekly Low||1.2872|
|Previous Monthly High||1.3281|
|Previous Monthly Low||1.2954|
|Daily Fibonacci 38.2%||1.2952|
|Daily Fibonacci 61.8%||1.2979|
|Daily Pivot Point S1||1.2879|
|Daily Pivot Point S2||1.2835|
|Daily Pivot Point S3||1.2762|
|Daily Pivot Point R1||1.2996|
|Daily Pivot Point R2||1.3069|
|Daily Pivot Point R3||1.3113|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.