GBP/USD remains on the defensive, below mid-1.3100s post-ADP report

Haresh Menghani FXStreet

• Fresh Brexit jitters continue to weigh on the British Pound.
• Mixed ADP report fails to provide any meaningful impetus.

The GBP/USD pair maintained its offered tone through the early North-American session and moved little post-US labor market report.

According to the latest ADP report, private sector employers added 183K new jobs in February as compared to consensus estimates pointing to a reading of 189K. A slight disappointment was largely offset by a sharp upward revision to the previous month's figures, now showing an addition of 300K jobs (213K reported previously) and making it the best month since May 2015.

The US Dollar bulls seemed rather unimpressed by the report, though the prevalent cautious mood, reinforced by a modest decline in the US Treasury bond yields, coupled with reemerging Brexit uncertainties kept the pair on the defensive below mid-1.3100s.

In the latest Brexit development, meeting between UK Attorney General Geoffrey Fox, Brexit Minister Stephen Barclay and EU's chief negotiator Michel Barnier on Tuesday failed to produce any major breakthrough on the Irish backstop issue and the talks were said to continue on Wednesday.

With today's US economic data out of the way, any incoming Brexit-related headlines might continue to act as an exclusive driver of the sentiment surrounding the British Pound and produce some meaningful trading opportunities ahead of scheduled speeches by New York Fed President John Williams and external BoE MPC Member Michael Saunders.

Technical outlook

Yohay Elam, FXStreet's own Analyst offers important technical levels to trade the pair: “Support is at the round number of 1.3100 which supported the pair on Tuesday. The next level to watch is 1.3050 which provided some support in late February and meets the rising 200 SMA. 1.3010 cushioned cable in mid-February and is followed by the swing low fo 1.2970 seen later last month.”

“1.3150 supported the pair on Tuesday and is fought over at the time of writing. 1.3200 was the high point on Tuesday and also a round number. 1.3270 was the peak on Monday, before GBP/USD closed the gap. 1.3350 is the high point recorded late in February,” he added further.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold consolidates below $5,150 as traders await Trump's State of the Union address

Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.

Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform

Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.