GBP/USD holds weaker below 1.2800 handle ahead of NFP

Haresh Menghani FXStreet

• Absent negative Brexit headlines prompt some short-covering bounce.
• A subdued USD price action remained supportive of the intraday rebound.
• All eyes remain glued to the latest US monthly jobs report for November.

The GBP/USD pair quickly reversed an early European session dip to an intraday low level of 1.2734, with bulls eyeing a move back towards the top end of its daily trading range.

The pair continued with its two-way price action on the last trading day of the week as remain non-committal amid persistent Brexit uncertainties. Meanwhile, absent negative Brexit headlines seemed to be one of the key factors extending some support and prompting some short-covering move.

Adding to this, a subdued US Dollar price action, ahead of today's key release - the closely watched US monthly jobs report, popularly known as NFP, further collaborated to the pair's goodish intraday rebound of around 30-40 pips.

The US economy is expected to have added 200K new jobs during the month of November, down from the previous month's upbeat reading of 250K, and the unemployment rate is seen holding steady at 3.7%. The key focus will be on average hourly earnings, anticipated to have grown at a slightly faster pace of 0.3% m/m, with yearly wage growth standing at 3.1%.

• US NFP Preview: Major Banks expectations from November payrolls report

Despite today's key US macro data, investors will still have reasons to be cautious ahead of the crucial Parliamentary vote on the UK PM Theresa May’s negotiated deal on Dec. 11th, which should play an important role in driving near-term sentiment surrounding the British Pound.

Technical levels to watch

Any meaningful up-move is likely to confront some fresh supply near the 1.2800 handle, which if cleared might trigger a short-covering bounce towards weekly tops, around the 1.2835-40 region. On the flip side, the 1.2735-30 region, closely followed by the 1.2700 handle might continue to protect the immediate downside, below which the pair is likely to head back towards challenging yearly lows, around the 1.2660 region.

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.