GBP/USD retraces gains, turns flat near 1.3240 as DXY gains traction

GBP/USD trades in a 30-pip range above the 1.32 mark.
DXY eases below 94 in the early NA session.
Market volatility remains low ahead of Thanksgiving holiday.

Eren Sengezer FXStreet

The GBP/USD pair reached a new daily high at 1.3266 in the first trading hour of the American session but struggled to extend its gains. At the moment, the pair is trading at 1.3240, up only 5 pips on the day.

BoE MPC members didn't deliver any surprises

Earlier in the day, the Bank of England MPC members testified before the Treasury Select Committee (TSC). Commenting on the policy outlook, members reiterated the views from the latest BoE statement as they said they were seeing a modest tightening strategy as appropriate and rising energy prices would push the inflation higher in the short-term. On Wednesday, the UK Chancellor of the Exchequer Hammond is scheduled to deliver his first Autumn budget. BBH analysts think that this could be his first and last budget statement as they argue that he would be vulnerable to a cabinet reshuffle.

On the other hand, the US Treasury-bond yields fell sharply when American traders hit their desks and pushed the DXY back below the 94 mark from its weekly high of 94.08. However, as this drop hadn't been backed by a fundamental development, the index started to erase its losses. After losing as much as 1.5%, the 10-year T-bond yield is now losing only 0.44% while the DXY is flat near the 94 handle following its quick all to 93.80.

The macroeconomic calendar won't be offering any data in the remainder of the day and the pair is likely to remain confined in its daily range above the 1.32 mark.

Technical outlook

The pair could face the immediate support at 1.3200 (psychological level) and a daily close below that level could open the door for further losses towards 1.3150 (100-DMA) and 1.3060 (Nov. 13 low). On the upside, resistances align at 1.3280 (Nov. 20 high), 1.3320 (Nov. 1 high) and 1.3400 (psychological level).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.