GBP/USD holds stable above 1.3400 handle post-BOE

Haresh Menghani FXStreet

• BOE keeps interest rates and asset purchase facility unchanged.
• US macro data eyed for some fresh impetus.

The GBP/USD pair quickly recovered a knee-jerk slide to the 1.3400 neighborhood and had a rather muted reaction to the BOE announcement.

The pair held within a familiar trading range, around the 1.3420-30 region, after the Bank of England (BOE), as was widely expected, unanimously voted to leave interest rates unchanged at 0.50% and asset purchase facility at £435 billion.

Meanwhile, the market seems to have largely digested the latest negative Brexit development, wherein the UK lawmakers' vote against PM Theresa May's Brexit plan, with today's upbeat UK monthly retail sales and the post-FOMC subdued US Dollar price action supporting the pair's strong bid tone.

In absence of any subsequent press conference, investors now look forward to the US economic docket, featuring the release of monthly retail sales and initial jobless claims, for some fresh trading impetus.

Technical outlook

Mario Blascak, European Chief Analyst at FXStreet writes, "near-term resistance is at a round big figure of $1.3500 before the cyclical high of $1.3550. With GBP/USD breaking below $1.3360 the currency pair is seen attacking lower levels of $1.3300-$1.3320."

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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.