- The Pound is steeply off the week's action after a bearish Thursday.
- Friday sees markets wrapping up with a risk-off note and a thin showing for the macro calendar.
The GBP/USD is down into two-week lows heading into Friday's London markets, near 1.3250 following Thursday's intense drop-off.
The Sterling lifted on Thursday, climbing into 1.3446 following better-than-expected Retail Sales for the UK, but the bull ride was short-lived following a dovish showing from the European Central Bank's Mario Draghi, who pushed out expectations of a rate hike for the EU into 2019. Markets recoiled at the news, reversing risk flows and sending traders piling into the Greenback.
The sell-off extended into the US session, with economic data for the US widely beating expectations, further driving the USD higher against the broader markets, and the GBP is slumping heading into the end of the week.
Friday is dry for the GBP, and the USD sees mid-tier Industrial Production for May at 13:15 GMT (forecast 0.2%, prev. 0.7%) and the Baker Hughes Oil Rig Count at 17:00 GMT, which last came in at 852 which could impact oil fluctuations to cap off the week.
GBP/USD levels to watch
Friday will be a bitter session for the Sterling, which finds itself forced to attempt to crawl out of a hole that appeared out of nowhere, and as Denis Joeli Fatiaki noted in his GBP/USD analysis, "the Pound against the US dollar had the same fate as the Euro during the European session after ECB's decision to slow down QE in September and put an end in December. The Pound fell from1.34466 and pierced through six major support points before finding temporary relief at 1.32567 support. The Pound is now trading at 1.3250, and will need to hold above that for any possibility of starting the recovery. Failure to hold at 1.32505 could see prices fall further to 1.32382."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold stays in consolidation above $2,300
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.