GBP/USD flirting with lows near mid-1.2600s

Haresh Menghani FXStreet

The GBP/USD pair extended previous session's retracement from levels beyond the 1.2700 handle and held weaker through early NA session on Thursday.

The pair came under some fresh selling pressure and eroded part of previous session's strong recovery gains, led by hawkish comments by BoE's Chief Economist Andrew Haldane, amid persistent political uncertainty in the UK. Lack of clarity over the prospects of a deal between the Conservatives and DUP, to allow PM Theresa May to maintain a minority government, has been one of the factors that continues to weigh on the British Pound.

Even a subdued US Dollar action, in wake of a fresh leg of downslide in the US Treasury bond yields, did little to extend any support, albeit seems to have collaborated towards limiting any immediate sharp downslide, at least for the time being.

• USD in the midst of a low intensity grind higher - Westpac

Meanwhile, markets had a muted reaction to the usual weekly jobless claims data from the US, which although showed a modest rise in the number individuals claiming for unemployment related benefits but remained closer to multi-decade lows.

Next in focus would be the Federal Reserve Governor Jerome Powell's testimony before the US Senate Committee on Banking, ahead of BOE MPC member Kristin Forbes' speech at the London Business School.

The major would also be influence by any news / developments coming out of the UK PM Theresa May's meeting with the EU leaders on Brexit terms.

• UK: Things about to get tougher for PM May - BBH

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "Technically, the 4 hours chart shows that the risk remains towards the downside, with a bearish 20 SMA having contained advances ever since the day started, now around 1.2685, whilst technical indicators lost upward strength after bouncing from oversold readings, now flat within negative territory. The immediate support comes at 1.2635, with a break below it exposing the 1.2590 region, where the pair bottomed earlier this week. Further slides will favor an approach to the 1.2500 region during the following sessions."

"To gain some bullish traction, the pair needs to extend beyond 1.2720, with scope then to extend its recovery up to 1.2760" she added further.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

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.