GBP/USD may decline toward 1.3400 – UOB Group

FXStreet Insights Team FXStreet

Pound Sterling (GBP) may decline toward 1.3400; a clear break below this level appears unlikely. In the longer run, GBP is likely to trade in a range between 1.3360 and 1.3525, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Clear break below 1.3400 appears unlikely

24-HOUR VIEW: "GBP fell to a low of 1.3402 last Thursday. On Friday, we were of the view that GBP 'may retest the 1.3400 level.' Our view did not materialise, as GBP traded in a range of 1.3430/1.3488. GBP gapped lower at the open today, and it may continue to decline toward 1.3400. Based on the current momentum, a clear break below this level appears unlikely. On the upside, any recovery is likely to hold below 1.3475, with minor resistance at 1.3455."

1-3 WEEKS VIEW: "In our most recent narrative was from last Tuesday (30 Sep, spot at 1.3435), we held the view that GBP 'is likely to trade in a range between 1.3360 and 1.3525.' While there has been a slight increase in downward momentum, it is not sufficient to indicate a sustained decline. For the time being, we will continue to expect GBP to trade in a range between 1.3360 and 1.3525."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD keeps range near mid-0.7100s as USD bulls await US CPI

AUD/USD steadies near mid-0.7100s in the Asian session on Friday, stalling the previous day's sharp decline to an over one-week low. The August PPI report reaffirmed Fed rate-hike bets and boosted the US Dollar on Thursday, which weighed heavily on the pair. However, hawkish RBA expectations limited losses for the Aussie as USD bulls now await the release of the US consumer inflation figures before placing fresh bets.

USD/JPY holds lower ground toward 154.00; looks to US CPI

USD/JPY holds lower ground toward 154.00 in the Asian session on Friday after hot Japanese PPI data bolster a more hawkish BoJ repricing and provide fresh impetus to the Japanese Yen. However, the downside appears capped as the US Dollar preserves overnight gains ahead of the latest US consumer inflation data.

Gold: Gains remain capped by $4,400

Gold regains composure and trades with decent gains on Friday, managing to refocus attention on the $4,440 mark per ounce troy. Therefore, the precious metal reverses Thursday’s decline as the US Dollar alternates gains with losses at the end of the week.

Ripple Price Forecast: XRP extends decline as returning ETF inflows fail to lift outlook

Ripple (XRP) falls below $1.33 on Friday, marking the third consecutive day of declines. The token continues to track the broader cryptocurrency market downturn, with investors closely monitoring heightened macroeconomic uncertainty ahead of the United States (US) Consumer Price Index (CPI) release and next week’s Federal Reserve (Fed) monetary policy decision.

Weekly focus – The hawks set the tone

Risky assets came under pressure this week as energy prices kept creeping higher and the ECB surprised the markets with a hawkish tone. The price of Brent crude touched USD 110 per barrel on Thursday night, highest since mid-May, as news emerged that the Yemeni Houthis had reached control of key port cities and islands near the Bab el-Mandeb strait.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.