GBP/USD faces further consolidation near term – UOB

Pablo Piovano FXStreet

In the view of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, GBP/USD is seen navigating within the 1.2180-1.2400 range in the short-term horizon.

Key Quotes

24-hour view: We did not anticipate the sharp drop in GBP that reached a low of 1.2213 (we were expecting it to trade sideways). While the sharp drop appears to be overdone, there is room for GBP to weaken further. In view of the oversold conditions, a sustained drop below 1.2180 appears unlikely (next support is at 1.2140). Resistance is at 1.2245, followed by 1.2270.

Next 1-3 weeks: We continue to hold the same view as yesterday (09 Nov, spot at 1.2285). As highlighted, GBP is likely to trade in a range of 1.2180/1.2400 for now. However, short-term downward momentum has improved somewhat, and the risk of GBP breaking below 1.2180 has increased. That said, it is worth noting that there is another strong support level at 1.2140. To put it another way, a sustained decline in GBP appears unlikely.

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.

GBP/USD holds gains near 1.3300, NFP data eyed

GBP/USD gains traction to near 1.3300 in the European session on Thursday. The British Pound strengthens against the US Dollar as the UK's likely next Prime Minister, Andy Burnham, has eased market concerns by pledging strict fiscal discipline. The US Nonfarm Payrolls data for June will take center stage later on Thursday.

EUR/USD grinds higher toward 1.1400 ahead of US NFP

EUR/USD ticks higher toward 1.1400 in the early European trading hours on Thursday. However, the pair lacks bullish conviction as traders eagerly await the release of the crucial US Nonfarm Payrolls report for a fresh directional impetus.

Gold sticks to gains above $4,050; bulls seem hesitant ahead of US NFP

Gold retains a positive bias for the second consecutive day on Thursday, though it remains confined within the previous day's broader trading range. The US Dollar edges lower on the back of Wednesday's softer-than-expected US macro data, and turns out to be a key factor supporting the commodity for the second consecutive day.

Ripple and Stellar build on recovery as traders turn cautiously bullish

Ripple and Stellar extend recovery as improving market sentiment supports a rebound. XRP trades above $1.05 while XLM climbs past $0.199. Traders should remain cautious, as mixed on-chain and derivatives data indicate a modest bullish bias, and further upside may depend on sustained buying momentum.

Nonfarm Payrolls set to grow by over 100K in June, reinforcing bets of upcoming Fed rate hikes

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for June on Thursday at 12:30 GMT. Investors expect NFP to rise by 110K following three consecutive months of surprisingly strong increases. Investors are pricing in a hawkish Federal Reserve policy outlook with the new Chairman Kevin Warsh at the helm.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.