- GBP/USD consolidates recent gains around monthly top, teases intraday low of late.
- Brexit blamed for labor, food shortage, key members ask for "proportionate and structured" over NI border.
- Virus infections, death toll increase in the UK but policymakers are yet to decide over jabbing of 12–15 years children.
- Off in the US can restrict market moves but mild risk-off keeps intraday sellers hopeful.
GBP/USD takes offers around 1.3850 while marking the first daily loss in five heading into Monday’s London open. In doing so, the quote refreshes intraday low while flashing 0.18% downside on a day.
The coronavirus woes and an off in the US join a light calendar to weigh on the market sentiment, underpinning the US dollar. Also negative for the GBP/USD prices are the headlines covering the Brexit fears and tax-hike in the UK.
“Business leaders, trade unions and academics have urged the UK and the EU to deliver ‘balanced, bespoke and reasonable’ solutions to tensions caused by the post-Brexit trade arrangements for Northern Ireland,” said the BBC. On the same line, fears of food and manpower shortage escalate, which in turn pushes the Confederation of British Industry (CBI) to relax immigration rules to fix jobs squeeze, per Reuters. The piece also quotes the CBI as saying, “The government had also failed to follow official advice on which jobs should qualify for shortage status, and rules on what kinds of training qualified for support under a government apprenticeship scheme were also too restrictive.”
On a different page, the UK Times has the headline suggesting UK Prime Minister (PM) Boris Johnson will push through a rise in national insurance to fund social care.
Elsewhere, the UK reports an easing in daily figures but the weekly numbers are a bit high as the policymakers jostle over booster shot and vaccinations of children of 12–15 years. “The UK has recorded 37,011 new COVID cases and 68 more coronavirus-related deaths in the latest 24-hour period, government data shows. The figures compare with 37,578 infections and 120 fatalities reported yesterday, while 33,196 cases and 61 deaths were announced this time last week,” said the Sky News.
In addition to the Brexit and covid woes, global economic fears, recently underpinned by the US jobs report for August, exert additional downside pressure on the GBP/USD prices.
Given the lack of major data/events, as well as the UK holiday, GBP/USD may extend the latest pullback moves as the US Dollar Index (DXY) attempts recovery on mildly cautious sentiment.
Although a bearish cross between the 200-DMA and 50-DMA backs the latest pullback moves, a downward sloping trend line near 1.3825, followed by the stated moving average surrounding 1.3815-05, challenges the GBP/USD bears.
Additional important levels
|Today last price||1.3852|
|Today Daily Change||-0.0022|
|Today Daily Change %||-0.16%|
|Today daily open||1.3874|
|Previous Daily High||1.3892|
|Previous Daily Low||1.3818|
|Previous Weekly High||1.3892|
|Previous Weekly Low||1.3731|
|Previous Monthly High||1.3958|
|Previous Monthly Low||1.3602|
|Daily Fibonacci 38.2%||1.3864|
|Daily Fibonacci 61.8%||1.3846|
|Daily Pivot Point S1||1.3831|
|Daily Pivot Point S2||1.3788|
|Daily Pivot Point S3||1.3757|
|Daily Pivot Point R1||1.3904|
|Daily Pivot Point R2||1.3935|
|Daily Pivot Point R3||1.3978|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
EUR/USD advances toward 1.0800 ahead of US NFP
EUR/USD is on a gradual advance toward 1.0800 in the early European morning. Positive risk sentiment on Congressional approval of the US debt limit suspension and dovish Fed expectations is exerting bearish pressure on the US Dollar. US Nonfarm Payrolls awaited.
GBP/USD grinds higher toward 1.2550 amid USD weakness, US jobs data eyed
GBP/USD is inching higher toward 1.2550 in early Europe, as markets cheer a risk-friendly environment, which is rendering negative for the safe-haven US Dollar. The pair shrugs off UK economic woes on Brexit barriers. The focus now remians on the US NFP report.
Gold eyes a sustained move above $1,992 on weak US Nonfarm Payrolls
Gold price is treading water above the $1,970 level on the United States Nonfarm Payrolls (NFP) day, as the US Dollar (USD) is licking its wounds, in the face of an upbeat market mood and mixed US economic data releases.
Pro-XRP lawyer: Ripple losing the SEC lawsuit might be a blessing in disguise
XRP price made a decent recovery in the month of May, fueled by Ripple's chances of winning the lawsuit it is facing against the Security and Exchange Commission (SEC). The cryptocurrency has amassed a huge base of supporters, which might potentially expand further regardless of the outcome.
The US labour market: A closer look at the data
The US will release its official labour market report on Friday, and traders are busy. The fast-growing indicator for new vacancies rose again in recent years, reaching over 10 million in April, defying the expected drop from 9.7 million to 9.4 million.