GBP/USD holding just above 1.32 ahead of BoE's Carney speech

The Sterling is drifting towards recent lows as confidence shakes out on combative statements from the BoE.
Today's Financial Stability Report and included Carney speech will draw plenty of attention for Wednesday.

Joshua Gibson FXStreet

The GBP/USD is trading steady near 1.3230 after Tuesday's action saw the pair slide from a high of 1.3290 as market sentiment continues to drift towards the downside.

The mood for the Sterling went lower on Tuesday, driven by comments from the Bank of England's (BoE) Monetary Policy Committee member Jonathan Haskel accused improper investment spending of being the primary driver behind the UK's slow productivity growth, and is further hampering interest rate's abilities to spur on further business investment. The GBP reacted negatively throughout the day, dipping into a low of 1.3190 before recovering at the tail end of the US session.

Wednesday brings a hefty outing from the BoE's Governor, Mark Carney, who will be speaking at 08:30 GMT when the central bank releases their latest Financial Stability Report, and Carney is expected to walk markets through the release's key points.

Later on in the US session will be the US' Durable Goods orders, with the data for May expected to come in at -1.0%, a negative reading, but still an improvement from the last reading of -1.6%.

GBP/USD levels to watch

Negative comments from BoE members are doing the Sterling no favors, and as FXStreet's Chief Analyst Valeria Bednarik noted on the GBP/USD's technical stance for Wednesday: "the GBP/USD pair 4 hours chart shows that it fell below its 20 SMA, the first time since BOE's boost, while technical indicators entered negative territory, with nice downward slopes and at fresh weekly lows, anticipating some further declines ahead. Bulls will become more courageous only on a break above 1.3315, now a less likely scenario, while renewed selling pressure below the 1.5180 region exposes the 1.3100 figure, where the pair bottomed for this 2018."

Support levels: 1.3180 1.3135 1.3100

Resistance levels: 1.3245 1.3280 1.3315

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold extends losing spree as US bond yields hold ground

Gold extends its losing streak for the fourth trading day on Wednesday, trading 0.2% lower to near $4,115 in the Asian session. The precious metal is under pressure as United States Treasury Yields on the back of significant gains in oil prices in past few weeks.

Ethereum bounces off $2,400 for a sixth day despite ETF outflows

Ethereum (ETH) bounced again near the $2,400 level on Tuesday, the sixth straight day, as its on-chain cost basis and key moving averages have stood as key support levels. The sub-$2,400 level has proven to be a strong support for the top altcoin over the past week amid macro pressures. Buyers have repeatedly stepped in to defend prices whenever it falls below the level.

UK CPI set to accelerate, paving the way for a BoE interest rate hike in November

The United Kingdom Office for National Statistics is expected to release September’s Consumer Price Index on Wednesday at 06:00 GMT. These figures will be accompanied by the Producer Price Index and the Retail Sales report.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.