GBP/USD: Soft undertone persists – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is little changed on the day, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP holds consolidation range

“The RICS House Price Balance index turned positive in September (11%) for the first time in two years after a marginal gain in August was revied lower to 0%. The survey reflects real estate surveyors seeing higher prices minus those reporting declines and supports the outlook for a further strengthening in the UK housing market as UK interest rates ease.”

“The GBP retains a soft undertone against the USD but Cable is still holding in the 1.3060/1.3100 trading range that it has held since the start of the week. Underlying trends remain negative though and a test of 1.30 support remains a risk. Weakness below 1.30 on a sustained basis would increase chances of a deeper drop back to 1.27/1.28.”

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 holds firm near 0.7000 after Chinese inflation data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, little moved by China's mixed inflation data. CPI rose less than expected in September, while PPI inflation picked up. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus will be on the US consumer inflation figures for fresh tradiing impetus.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold stays defensive near $4,150, awaits US CPI report

Gold is oscillating in a narrow band near $4,150 in the Asian session on Wednesday, awaiting US Consumer Price Index (CPI) inflation data for more cues about the Fed's policy path. Meanwhile, escalating hostilities between Saudi Arabia and Yemen's Iran-backed Houthis lift Oil prices, weighing on Gold. However, a softer US Dollar helps limit Gold's downside.

Strategy bitcoin buying model faces scrutiny as STRC costs climb

Strategy’s (MSTR) STRC financing strategy increased its Bitcoin (BTC) holdings in H1, but made its capital structure more expensive, prompting an examination of its effectiveness, according to a Tuesday report by K33. STRC recovered close to its $100 par value, closing at $99.90 after an extended period of heavy buybacks.

What happens after a US Treasury market crash

The global bond market is under severe pressure as US Treasury yields reach multi-decade highs, driven by persistent inflation risk, heavy government and corporate debt issuance, and expanding term premiums. Higher yields raise borrowing costs and tighten financial conditions, but a severe bond selloff can ultimately shift investor focus from inflation to growth and financial stability.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?