GBP/USD rises for 3rd straight session, eyes on UK GDP

Dhwani Mehta FXStreet

The offered tone behind the US dollar gathered steam across the board over the last hours, fuelling further upside in GBP/USD.

The major is extending its winning streak so far this week, with the latest upmove backed by some fresh selling seen in the greenback broadly, in response to Cleveland Fed President Mester’s cautious take on US interest rates outlook in her latest speech.

Fed’s Mester: We have to change policy path if economic outlook changes

While on the GBP-side of the equation, the draft Brexit law has passed its House of Lords 2nd reading without vote and the bill now goes for consideration to its 'committee stage' on February 27. This implies that the UK PM May could trigger the Article 50 by March 31.

Data-wise, we have the UK’s second estimate Q4 GDP data alongside business investment data lined up for release in Europe, while the US has existing home sales data release. Besides, BOE MPC member Cunliffe and Fed official Powell will cross the wires ahead of the FOMC minutes due on the cards later today.

GBP/USD Levels to consider

The upside barriers are lined up at 1.2527 (Feb 16 high), 1.2550 (Feb 14 high) and 1.2585 (Feb 9 high). While supports are aligned at 1.2471 (10-DMA) and 1.2456 (5-DMA) and below that at 1.2433 (100-DMA).

1. R3 1.2483
2. R2 1.2463
3. R1 1.2447
PP 1.2427
1. S1 1.2411
2. S2 1.2391
3. S3 1.2375

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.