GBP/USD hits fresh session lows, around mid-1.3000s

Haresh Menghani FXStreet

• A goodish pickup in the USD demand triggers the initial leg of the retracement slide.
• Conservative MP Steve Baker’s comments exert additional downward pressure.
• Investors eye Brexit Secretary Raab's speech in the parliament for fresh impetus.

The GBP/USD pair struggled to build on its early positive momentum to 100-day SMA hurdle and has now drifted into negative territory for the second straight session.

After an initial uptick to levels just above the 1.3100 handle, the pair met with some fresh supply and was being weighed down by some renewed US Dollar buying interest.

Firming prospects for gradual Fed rate hike through the end of this year, and beyond, pushed the US Treasury bond yields to fresh multi-year tops and continued underpinning the greenback.

Meanwhile, the latest leg of a sharp decline of around 50-pips over the past couple of hours or so could further be attributed to comments by Conservative MP Steve Baker, a former junior Brexit minister.

Speaking on BBC Radio 4 this Tuesday, Baker said that his Conservative colleagues are prepared to vote against Chequers amendments and the UK should not be afraid to move forward with 'no-deal'.

With Brexit headlines turning out to one one of the key factors influencing sentiment surrounding the British Pound, market participants now look forward to the Brexit Secretary Dominic Raab's speech in the parliament.

According to the POLITICO, Raab will update MPs on the Brexit negotiations today as parliament returns from its 25-day conference break and his comments should infuse a fresh bout of volatility across the GBP pairs.

Technical levels to watch

The 1.3030-25 region might continue to act as an immediate support, which if broken is likely to accelerate the fall towards the key 1.30 psychological mark before the pair eventually drops to mid-1.2900s.

On the upside, the 1.3100 handle now seems to have emerged as an immediate hurdle, above which the pair is likely to head towards testing 1.3125 intermediate resistance en-route the 1.3155-60 supply zone.

Author

Haresh Menghani

FXStreet

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

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD inches lower during the Asian hours on Monday, trading around 1.1870 at the time of writing. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming improving momentum. RSI has cooled from prior overbought readings but stabilizes above 50, suggesting dips could stay limited before buyers reassert control.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.