GBP/USD plummets to lows near 1.3240 as B.Johnson resigns

Cable tumbles to lows at 1.3240 after Johnson quits.
Sterling suffers after D.Davis,B.Johnson resign.
All attention now shifted to PM T.May, Brexit progress.

Pablo Piovano FXStreet

The British Pound is now trading into the negative territory at the beginning of the week, forcing GBP/USD to drop to fresh lows in the 1.3260 region.

GBP/USD gains halted around 1.3360

Cable is losing around a cent since earlier tops in the 1.3360 zone after a wave of selling orders hit GBP following Foreign Secretary Boris Johnson resignation on Monday. Johson’s resignation follows Brexit Secretary David Davis’ and cast a mantle of doubt over the Brexit negotiation and PM T.May’s government.

Cable’s recent upside momentum has been sustained by the persistent weakness around the greenback, specially emphasized following Friday’s mixed results from the US Non-farm payrolls.

Later in the week, UK’s Industrial/Manufacturing Production is next on tap (Tuesday) seconded by speeches by Governor Carney’s (Wednesday) and Cunliffe (Friday).

GBP/USD levels to consider

As of writing, the pair is retreating 0.24% at 1.3255 and a break below 1.3241 (low Jul.9) would aim for 1.3239 (21-day sma) and finally 1.3197 (mo10-day sma). On the upside, the next resistance emerges at 1.3363 (high Jul.9) seconded by 1.3474 (high Jun.8) and then 1.3588 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold sticks to gains, eyes $4,450 as USD remains depressed ahead of US inflation data

Gold turns higher following an intraday dip to sub-$4,400 levels, and moves further away from a one-week low touched the previous day. The commodity, however, remains below the $4,450 pivotal point as bulls seem hesitant ahead of US inflation figures. The US Producer Price Index report will be published later today, while the US Consumer Price Index is due on Friday.

Raydium's rally signals trend reversal amid network growth, buyback

Raydium maintains a firm bullish tone, posting nearly 9% gains, and extending its 41% rally from Sunday. Solana-based Decentralized Exchange is witnessing a surge in network activity and growth amid new token launches. The technical outlook for Raydium signals a potential upside toward $1.50 as momentum holds firm despite overbought conditions.

European Central Bank to resume interest rate hikes in September as inflation, energy risks rise

The European Central Bank is expected to raise the interest rate on the Main Refinancing Operations and the Deposit Facility by 25 basis points to 2.65% and 2.50%, respectively. The ECB will announce the decision on Thursday at 12:15 GMT.

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.