GBP/USD: Poised to rebound – Westpac

FXStreet Team FXStreet

The UK will receive a long-awaited Budget next week after the longest period between Budgets since at least 1900. Meanwhile, EU-UK negotiations began this week without hostility. The cable is ready to rebound in the opinion of analysts at Westpac Institutional Bank.

Key quotes

“Last month’s shuffling of Chancellors and floating of balloons about tax-raising initiatives suggested that Govt. might limit the risk of a blowout in the budget deficit (finally back below -2% of GDP).”

“The widening of COVID-19 could actually mean that the Budget proves to be more expansionary in order to bolster nascent lifts in investment while holding to manifesto commitments to increase health, welfare, security services, and education spending.”

“Andrew Bailey, Carney’s replacement, stated this week that more evidence is needed for such an early move and indicated that he is in close discussions with the Treasury with respect to next week’s Budget.”

“Negotiations on the future relations with the EU began this week. Rather than increasing tensions that had led to GBP weakening recently, the talks have proceeded with less apparent hostility. GBP/USD seems poised to rebound within its 1.2725-1.3200 range.”

Author

FXStreet Team

FXStreet

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.