GBP/USD spikes to 1.35 handle amid fresh USD supply

Haresh Menghani FXStreet

• USD selling remains unabated.
• Weaker US bond yields add to USD weakness.

A fresh wave of greenback selling emerged in the last hour and pushed the GBP/USD pair to the key 1.3500 psychological mark, or fresh 3-week tops.

In absence any fresh development, a mildly weaker tone around the US Treasury bond yields accelerated the US Dollar downfall and eventually provided a fresh boost to the pair.

Moreover, possibilities of some stops being triggered, on a decisive move above 1.3465-70 horizontal resistance, might have also collaborated to the pair's sharp upsurge of around 30-pips in the past hour or so.

Meanwhile, pre-holiday thin liquidity conditions seemed to have further aggravated the move and even from a technical perspective, the pair is currently placed near a short-term descending trend-line resistance.

Hence, it would prudent to wait for a strong follow-through buying interest before committing to any additional up-move.

Technical levels to watch

The ongoing momentum seems strong enough to continue lifting the pair towards its next major hurdle near mid-1.3500s, above which bulls would be aiming to reclaim the 1.3600 handle.

On the flip side, 1.3470 level now becomes an immediate support to defend, which if broken could accelerate the corrective slide back towards the 1.3430 intermediate support en-route the 1.3400 handle.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD weakens below 1.3450 as US-Iran uncertainty boosts safe-haven US Dollar

The GBP/USD pair loses ground to near 1.3425 during the early Asian session on Tuesday. Uncertainty surrounding US-Iran talks drives traders toward a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US July jobs data, which is due later on Friday.

EUR/USD flatlines above 1.1500 as traders turn cautious ahead of US NFP data

The EUR/USD pair holds steady around 1.1505 during the early European trading hours. Markets remain cautious ahead of the crucial US July jobs report, which is due later this week. Eurozone inflation ticked up in July, bolstering the case for a rate hike from the European Central Bank. The headline Eurozone inflation rose to 2.9% YoY in July from 2.8% in June, in line with expectations.

Gold consolidates above $4,050 amid Fed hike bets and Iran uncertainty

Gold seesaws between tepid gains and minor losses during the Asian session as traders seem hesitant and opt to wait for further developments surrounding the Middle East crisis. The US Dollar struggles to build on the previous day's solid bounce from the lowest level since Mid-June and acts as a tailwind for the bullion. However, the uncertainty over US-Iran peace talks helps limit the downside for the buck.

Ripple and Stellar steady as derivatives data points to easing downside pressure

Ripple and Stellar show mixed price action, with XRP holding above the key $1 support zone while XLM faces rejection at $0.173. Meanwhile, improving derivatives metrics alongside fading bearish momentum suggest that the downside pressure may be easing for both altcoins. Derivatives data shows mild bullish sentiment among traders.

NFP week: What awaits Bitcoin and Gold

This is an NFP week as markets brace for the release of a large influx of job market statistics. The data rollout begins with the JOLTS Job Openings report on Tuesday, continues with the ADP Employment report on Wednesday and Jobless claims on Thursday, and finishes with the Nonfarm Payrolls report on Friday.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.