- Labour spokesman says gaps remain between Labour and government.
- Retail sales decline in April in the U.S.
- US Dollar Index clings to daily gains despite the disappointing data.
After piercing through the 1.29 mark, the GBP/USD pair extended its slide and touched its lowest level since February 15 at 1.2852 in the last hour. As of writing, the pair was trading a couple of pips above that level, losing 0.4% on a daily basis.
The latest headlines surrounding cross-party Brexit talks in the UK seem to be weighing on the British pound. A spokesman for the opposition Labour party in the last hour told reporters that gaps remained between the Labour Party and the government in Brexit talks. "We have made it clear that we cannot support the Brexit legislation without an agreement," the spokesman reiterated. Although the fact that the Brexit vote is expected to take place in the first week of June shows that there is still time for sides to come to an agreement, markets don't seem to be convinced that a positive outcome is likely in the near-term.
On the other hand, British Prime Minister Theresa May's spokesman said that discussions with lawmakers across the House to seek to build a majority to pass the Brexit legislation were ongoing.
Meanwhile, the U.S. Census Bureau today reported that retail sales in April declined by 0.2% to fall short of the market expectation for an increase of 0.2%. Nevertheless, the US Dollar Index largely ignored this data and was last up 0.1% on the day at 97.65, making it difficult for the pair to stage a recovery.
Later in the session, the Fed's industrial production and capacity utilization from the U.S. will be looked upon for fresh catalysts.
Technical levels to consider
The pair could face the initial support at 1.2800 (psychological level) ahead of 1.2770 (Feb. 14 low) and 1.2710 (Jan. 8 low). On the upside, resistances are located at 1.2920 (daily high), 1.2960 (200-DMA) and 1.3000 (psychological level/50-DMA).
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 holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.