GBP/USD set to target 2018 highs at 1.4377 – Commerzbank

FXStreet Insights Team FXStreet

GBP/USD is hovering above 1.41. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects cable to continue its climb and reach the 2018 high at 1.4377.

Bullish above uptrend at 1.3760

“GBP/USD has eroded 1.4018 and is on target for 1.4238/45, the recent high and the March 2018 high.”

“Cable remains bid while dips hold above the uptrend at 1.3760. We have an additional support line at 1.3819 and only below the uptrend at 1.3760 would we question our bullish stance.”

“Our longer term target is 1.4377 the 2018 high.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD pulls back from monthly high but holds above 0.7000

AUD/USD retreats from the monthly high set earlier this Thursday, sliding back to 0.7000 during the Asian session as a further escalation of tensions in the Middle East undermines the risk-sensitive Aussie. However, recent hawkish comments from RBA officials could support the Australian Dollar. Furthermore, the prevailing US Dollar selling bias, despite Fed hike bets and geopolitical uncertainties, could limit losses for the pair.

USD/JPY declines to a one-week low; eyes trading range support near 157.50 on weaker USD

USD/JPY drops to a one-week low during Thursday’s Asian session, with bears now awaiting a break below multi-week range support near mid-157.00s before placing fresh bets amid a broadly weaker US Dollar. Despite bets for a December Fed rate hike and Middle East jitters, the recent decline in US bond yields keeps USD depressed near a three-week low. Moreover, hawkish BoJ expectations and intervention risks underpin the Japanese Yen, further weighing on the currency pair.

Gold extends fall below $4,100 as Fed hike bets counter USD weakness

Gold weakens further below $4,100, hitting a fresh one-week low as oil-driven inflation risks reinforce Fed hike bets and weigh on the bullion heading into the European session. Meanwhile, falling US bond yields keep the US Dollar depressed near a three-week low despite geopolitical uncertainties. This, however, does little to support the non-yielding bullion, backing the case for further losses.

Dogecoin stays weak despite whales and new deal

Dogecoin price remains under pressure, trading below $0.081 despite a modest rebound earlier this week. Santiment data shows signs of accumulation, and Wednesday’s announcement of a Dogecoin Labs partnership with the Dogecoin Foundation adds a mildly bullish sentiment. Meanwhile, mixed derivatives metrics and weakening momentum indicators continue to limit the meme coin recovery.

Dow Jones Industrial Average climbs with the AI trade, led by a bank

The Dow Jones Industrial Average got most of its share of Wednesday's artificial intelligence (AI) rally from a bank and a bulldozer maker. The index closed near 52,800, its highest close since early September. SpaceX (SPCX) reported 161% revenue growth and the Nasdaq Composite rose more than 1%, but under price weighting the gains that counted most belonged to Goldman Sachs (GS) and Caterpillar (CAT).

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.