GBP/USD firm near 1.3300 ahead of BoE

Cable’s upside stalled just below 1.3300 the figure overnight.
BoE is poised to hike rates after a decade.
Speculations points to a ‘dovish hike’.

Pablo Piovano FXStreet

The Sterling keeps the weekly upside well and sound despite Wednesday’s pullback and is now pushing GBP/USD to the vicinity of the 1.3300 handle, or session tops ahead of the BoE event.

GBP/USD all attention to the BoE

Cable is reverting yesterday’s retracement and keeps navigating the upper end of the range just pips away from the critical barrier at 1.3300 the figure.

GBP remains underpinned by solid expectations of a rate hike by the Bank of England at today’s meeting. However, previous market chatter over the likelihood of a ‘dovish hike’ could prompt investors to quickly ‘sell the fact’ and thus put the British Pound under renewed pressure.

Recent auspicious results from UK’s manufacturing PMI and advanced GDP figures for the third quarter keep underpinning the sentiment around GBP and somewhat reinforce the view of higher rates today.

In the US docket, the usual report on the labour market is due along with Challenger job cuts and speeches by FOMC’s J.Powell (dovish, permanent voter), Atlanta Fed R.Bostic (2018 voter, centrist) and NY Fed W.Dudley (permanent voter, centrist),

Further out in the US, attention remains on Trump’s announcement of the next Fed Chief (likely to be Jerome Powell) and Republicans should introduce the tax bill in Congress.

GBP/USD levels to consider

As of writing the pair is gaining 0.25% at 1.3279 and a breakout of 1.3299 (high Nov.2) would aim for 1.3338 (high Oct.13) and finally 1.3499 (2014-2017 resistance line). On the other hand, the next support emerges at 1.3210 (10-day sma) seconded by 1.3189 (55-day sma) and then 1.3070 (low Oct.27).

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 drifts lower below 1.3250 on steady BoE rate path, traders await US jobs data

The GBP/USD pair loses traction to around 1.3240 during the Asian trading hours on Tuesday. A potential rate hike from the US Federal Reserve provides some support to the US Dollar against the British Pound. The US ADP employment data and the US Nonfarm Payrolls data will take center stage later this week.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold crashes with Japanese Yen as stops likely triggered

Gold is down nearly 1.50% so far in Tuesday’s Asian trading, sitting at a fresh seven-month low as the key $3,950 psychological barrier gave way amid a renewed wave of selling.

Solana, Zcash, and Hyperliquid rebound while Bitcoin remains below $60,000

The broader cryptocurrency market remains under pressure with Bitcoin below $60,000 on Tuesday, while Solana, Zcash and Hyperliquid emerge as top performers over the last 24 hours. Retail sentiment remains bearish with the Fear and Greed Index around 17 on Tuesday, during early Asian hours, maintaining an “Extreme Fear” signal.

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.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.