GBP/USD keeps low near mid-1.2900s after mixed US data

Haresh Menghani FXStreet

The greenback held on to its recovery gains, with the GBP/USD pair heading back towards the lower end of daily trading range following US economic releases.

Currently trading around mid-1.2900s, the pair maintained its offered tone after data released from the US showed weekly jobless claims rose a mere 1,000 rose to 234K during the week ended May 19 as against a rise to 238K expected. Adding to this, wholesale inventories contracted 0.3% m-o-m during April as against consensus estimates pointing to 0.2% buildup.

The positive readings, however, seems to have been negated by an unexpected rise in the US goods trade deficit, coming-in at $68.0 billion for April from previous month’s $65 billion and worse than $64.7 billion expected.

Today's mixed releases did little to influence Fed rate-hike expectations, albeit remained supportive for the US Dollar’s recovery move from six month lows touched in the aftermath of not so hawkish FOMC meeting minutes.

Meanwhile, today’s downward revision of the UK Q1 GDP numbers kept the British Pound on the back-foot and also collaborated to the offered tone surrounding the major.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "In the 4 hours chart, the pair seems unable to settle above a bearish 20 SMA, while technical indicators have turned modestly lower around their mid-lines. The pair has an immediate support around 1.2950, followed by 1.2910. Below this last the pair has scope to extend its slide down to the 1.2860 region."

"Spikes beyond 1.3000 are still be seen as selling opportunities, and only above 1.3060, the pair will turn bullish and attempt an extension up to 1.3120" 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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.