GBP/USD refreshes weekly lows below 1.3850 on USD strength

GBP/USD follows the footprints of the previous week and edges lower in the early Asian trading session.
US Dollar Index trades near 93.00 on upbeat economic data and Fed official’s hawkish views.
The sterling struggles on the BOE hawkish shift, Brexit tension.

Rekha Chauhan Independent Analyst

GBP/USD edges lower on Monday’s Asian trading session. The pair opened higher albeit retreated quickly to touch the intraday low of 1.3858.

At the time of writing, GBP/USD is trading at 1.3862, down 0.06 % for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades above 92.80 with 0.11% gains. The upbeat Nonfarm Payroll (NFP) data came higher at 943k in July, the highest in the past 11-month period, above the market expectations of 870k

Meanwhile, US Senate moved closer to formalise a $1 trillion infrastructure on Sunday, adding to the optimism surrounding the US dollar.

In addition to that, investors rushed to safe-haven assets in view of the rapid spread of the delta variant and its impact on the global economic recovery.

On the other hand, the sterling gave up all the previous gains after the Bank of England (BOE) kept its key rates unchanged at historic lows of 0.1% as widely anticipated in the previous week.

In the latest development, the UK Prime Minister Boris Johnson warned the EU to get “extremely tough” over the Northern Ireland (NI) issue or risk the destructive breakup of the UK. The comments weighed on the British pound.

As for now, investors waiting for the release of the US JOLTS Job Opening for June to gauge the market sentiment.

GBP/USD additional levels

GBP/USD

Overview
Today last price	1.3865
Today Daily Change	-0.0007
Today Daily Change %	-0.05
Today daily open	1.3872

Trends
Daily SMA20	1.3832
Daily SMA50	1.392
Daily SMA100	1.3923
Daily SMA200	1.3758

Levels
Previous Daily High	1.3933
Previous Daily Low	1.3861
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3889
Daily Fibonacci 61.8%	1.3906
Daily Pivot Point S1	1.3844
Daily Pivot Point S2	1.3817
Daily Pivot Point S3	1.3773
Daily Pivot Point R1	1.3916
Daily Pivot Point R2	1.3961
Daily Pivot Point R3	1.3988

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold treads water below $4,300

Gold grabs some buying attention and advances marginally at the end of the week, partially retracing the weekly decline, although it is still navigating below the key $4,300 mark per troy ounce. The fresh selling bias on the Greenback and the modest decline in US Treasury yields appear to support the humble advance in the precious metal.

Crypto Today: Bitcoin and Ethereum edge lower, XRP extends recovery as macro headwinds weigh

The broader cryptocurrency market is consolidating on Friday, with Bitcoin paring losses slightly above $84,000. Ethereum declines in tandem with BTC. Ripple (XRP), meanwhile, paints a different picture.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Federal Reserve (Fed) and the Bank of Japan (BoJ) have just done something remarkably similar. Both central banks raised interest rates by 25 basis points (bps) last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.

Fed vs BoJ: Both hiked. The market only believes one of them – and the chart shows which

The Fed and the BoJ have just done something remarkably similar. Both central banks raised interest rates by 25 bps last week, both are confronting inflation risks, and both signal that future decisions will depend on incoming economic data.