GBP/USD finds support near 1.3210 ahead of BoE, PMI

Pablo Piovano FXStreet

The Sterling has recovered the ground lost during early trade, now prompting GBP/USD to return to the vicinity of 1.3230 after bottoming out near 1.3210.

GBP/USD all eyes on BoE

Cable is trading within a cautious range on Thursday ahead of the key BoE MPC meeting and Inflation Report expected afterwards.

Spot has been buoyant since the recent breakout of 1.3200 the figure, always on the back of the persistent weakness surrounding the greenback while headlines from the domestic scenario remain absent so far.

Ahead in the session, market consensus expects the key UK’s services PMI to come on the soft side after the mixed reports from the manufacturing and construction gauges seen in past sessions.

Regarding the BoE, strategists at TD Securities sees the central bank delivering a somewhat dovish message today, while attention should be mainly on the MPC vote: “We think that June was probably peak hawkishness for the MPC after a series of upside inflation surprises largely reversed in July. With little chance of a rate hike this week, we think that the market reaction to the BoE decision will depend on the result of the vote and the changes to the macro forecasts”, commented the strategists.

GBP/USD levels to consider

As of writing the pair is up 0.01% at 1.3224 facing the immediate hurdle at 1.3250 (2017 high Aug.2) followed by 1.3351 (high Sep.12 2016) and finally 1.3447 (high Sep.6 2016). On the other hand, a breach of 1.3188 (low Aug.1) would open the door to 1.3124 (10-day sma) and finally 1.3094 (23.6% Fibo of 1.2587-1.3250).

In addition, Cable is near overbought levels at 67 when gauged by the daily RSI (14), while the MACD stays on the bullish side for the time being.

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.

USD/JPY trims losses; focus is back to 156.00

USD/JPY now bounces off the area of multi-month lows and appears headed toward the 156.00 region ahead of the opening bell in Asia. The sharp pullback in spot comes in response to the sudden strengthening of the Japanese Yen, reflecting growing conviction among investors that the BoJ could deliver another interest rate hike as early as its September 18 policy meeting.

AUD/USD looks constructive above 0.7200

AUD/USD adds to Wednesday’s advance, reaching fresh four-month highs north of 0.7200 the figure late on Thursday. The pair’s solid performance follows the sharp sell-off in the US Dollar while market participants gear up for the release of US NFP on Friday.

Gold struggles to extend the bounce past $4,500

Gold adds to Wednesday’s gains and reclaims the area near the key $4,500 mark per troy ounce on Thursday. The strong decline in the US Dollar coupled with further weakness in US Treasury yields across the board also bolsters the move higher in the precious metal.

Bitcoin and Gold Outlook: BTC and XAU recover as US ISM Services PMI edges higher in August

Bitcoin (BTC) strongly rises to trade above the pivotal $80,000 level on Thursday. The Crypto King is rallying alongside broader cryptocurrency prices following the release of the United States (US) Services PMI. Gold (XAU/USD) is similarly bullish, trading at $4,500 at the time of writing. The metal is up over 2% on the day, signaling the return of bulls as market sentiment improves.

Canada's 6.4% unemployment rate: Why Friday's jobs print puts the BoC's slack story on trial

The Bank of Canada (BoC) held at 2.25% on Wednesday for a seventh straight meeting and rewrote the one paragraph that still argues against a hike. In July, the BoC’s statement called the labour market soft and pinned the unemployment rate inside a 6.5%-7% range it had held since the end of 2024. July's Labour Force Survey (LFS) then printed 6.4%.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.