- The USD weakens following the release of the dismal regional manufacturing index.
- Persistent Brexit uncertainties might keep a lid on any strong follow-through up-move.
The GBP/USD pair spiked to fresh session tops, with bulls looking to build on the recovery momentum further beyond the 1.2600 handle post-US data.
The US Dollar failed to capitalize on Friday's goodish bound and remained depressed on the first day of a new trading week, rather lost some ground following the release of weaker Empire State Manufacturing Index. In fact, the index dropped to -8.6 for June - marking its first contraction since May 2017 and the lowest reading since October 2016.
The data triggered a sharp intraday pullback in the US Treasury bond yields, which dragged the greenback farther from a two-week high set on Monday and turned out to be one of the key factors providing a minor lift to the major, albeit persistent Brexit uncertainties kept a lid on any further up-move.
Given that hardline Brexiteer Boris Johnson remains a leading candidate to be Britain's next Prime Minister, sentiment surrounding the British Pound remains fragile amid fears of a no-deal Brexit. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term or positioning for any further near-term recovery.
Technical levels to watch
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.
Latest Forex News
Editors’ Picks
EUR/USD under pressure below 1.1100 as US dollar rebounds
EUR/USD remains under pressure below 1.1100 amid the broad US dollar rebound. US President Trump's decision to extend lockdown to tackle the coronavirus outbreak intensified risks of a deeper economic slowdown and underpinned the haven demand for the greenback.
GBP/USD: Rebound remains capped by 1.2400 amid firmer US dollar
GBP/USD is off the lows but the upside attempts remain capped by 1.2400 amid a broadly stronger US dollar. The dire warnings on the UK’s economic growth amid expectations of a longer lockdown weigh on the spot.
Cryptocurrencies: Bulls try to take the reins again, XRP in front
The XRP/USD pair is best positioned to escape the bearish trap that has gripped the market in recent weeks. Ether needs to do better than BTC, as it has happened over the weekend. Market sentiment is at a negative extreme, an invitation to a short-term upward shift.
Gold remains confined in a narrow range around $1620 level
Gold extended its sideways consolidative price action and remained confined in a four-day-old trading range through the early European session on Monday. A goodish pickup in the USD demand seemed to be a key factor capping gains.
WTI closes in on multi-year lows, trades around $20.50 on demand concerns
The barrel of West Texas Intermediate (WTI) posted losses for the sixth straight time last meek and is now looking to close the month of March more than 50% lower.