- GBP/USD caught some fresh bids on Friday and was supported by a combination of factors.
- The latest optimism over the upcoming Brexit talks extended some support to the sterling.
- The USD remained depressed amid uncertainty over the next round of the stimulus measures.
The GBP/USD pair continued scaling higher through the early North American session and refreshed weekly tops, around the 1.3130-35 region in the last hour.
Following the previous session's intraday pullback of around 60 pips, the pair caught some fresh bids on the last trading day of the week and was being supported by a combination of factors. The British pound remained well supported by improving sentiment on Brexit trade talks, especially after Britain's chief negotiator David Frost said on Thursday that an agreement can be reached in September.
On the other hand, the US dollar remained depressed in the wake of the impasse over the next round of the US fiscal stimulus measures. Adding to this, a turnaround in the global risk sentiment led to a modest pullback in the US Treasury bond yields, which further undermined sentiment surrounding the greenback. The USD bulls seemed rather unimpressed by Friday's US monthly retail sales report.
Data published by the US Census Bureau revealed that retail sales rose by 1.2% MoM in July, short of consensus estimates pointing to an increase of 1.9%. The disappointing headline print negated an upward revision of the previous month's reading and stronger-than-expected figures excluding autos. Meanwhile, the Retail Sales Control Group climbed 1.4% in July as compared to 0.8% anticipated.
Apart from the mentioned factors, technical buying on a sustained move back above the 1.3100 area seemed to have contributed to the latest leg of a sudden spike over the past hour or so. Hence, some follow-through strength, back towards retesting the recent swing highs near the 1.3185 region, en-route the 1.3200 round-figure mark, now looks a distinct possibility.
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. 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
AUD/USD pressures as Fed officials hold firm on rate policy
The Australian Dollar is on the defensive against the US Dollar, as Friday’s Asian session commences. On Thursday, the antipodean clocked losses of 0.21% against its counterpart, driven by Fed officials emphasizing they’re in no rush to ease policy. The AUD/USD trades around 0.6419.
EUR/USD extends its downside below 1.0650 on hawkish Fed remarks
The EUR/USD extends its downside around 1.0640 after retreating from weekly peaks of 1.0690 on Friday during the early Asian session. The hawkish comments from Federal Reserve officials provide some support to the US Dollar.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
With all eyes peeled on the halving, Bitcoin is the center of attention in the market. The pioneer cryptocurrency has had three narratives this year already, starting with the spot BTC exchange-traded funds, the recent all-time high of $73,777, and now the halving.
Billowing clouds of apprehension
Thursday marked the fifth consecutive session of decline for US stocks as optimism regarding multiple interest rate cuts by the Federal Reserve waned. The downturn in sentiment can be attributed to robust economic data releases, prompting traders to adjust their expectations for multiple rate cuts this year.