GBP/USD should be trading lower – TDS

FXStreet Team FXStreet

Policymakers in the UK can rip off the Brexit band-aid, knowing full well that they could place the blame on any lost output to COVID, per TD Securities.

Key quotes

“The government is popular in comparison to their predecessors, which gives them more wiggle room to up the Brexit ante. With little to lose politically, and Johnson historically looking for a clean break, it will be essential to watch next month's transition deadline date.”

“Our positioning framework shows the market is short but on a relative basis that makes GBP look neutral. From here we expect another break below 1.20, as this theme gathers momentum.”

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FXStreet Team

FXStreet

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.