GBP/USD still stuck near 1.3250 ahead of Average Earnings call, BoE's Carney speech

Sterling continues to see drag on its tail ahead of Tuesday's earnings reporting.
PM May's latest Brexit proposal has seen some key changes by Brexiteers that muddy the exit waters.

Joshua Gibson FXStreet

The GBP/USD is still trading into 1.3250 after failing to make headway into the key 1.33 major figure on Monday.

Brexit continues to spin out into a political mess, and the back-and-forth between leavers and the stayers is still dragging on the GBP. Amendments were passed on Prime Minister Theresa May's latest Brexit proposals, and the changes made by majority vote by pro-Brexit ministers in the House of Commons are likely to make it significantly harder for PM May to reach a passable negotiated Brexit with EU leaders in Brussels.

Tuesday sees the latest earnings figures for the UK economy, dropping at 08:30 GMT. Average Earnings including bonuses is expected to grow by 2.5% for the first quarter of 2018, while Average Earnings without bonuses is expected to lift by 2.7%. At the same time, Unemployment readings are expected to remain steady at 4.2%. Just ahead of the Average Earnings reading will be a speech from the Bank of England's (BoE) Governor Mark Carney at 08:00 GMT, and Carney continues to keep reigns tight on a central bank that is moving closer to an interest rate hike, though trade risks continue to weigh on central banks' strategy outlook across the globe.

GBP/USD Levels to watch

As noted by FXStreet's own Valeria Bednarik, "the 4 hours chart for the par shows that the pair eased after testing the 200 EMA and pulled down toward a mild bearish 20 SMA. Indicators in the mentioned chart lost their upward strength, now heading south within neutral levels. The bearish potential will likely increase on a break below 1.3180, while chances for bulls will be higher on a break above the 1.3300 figure."

Support levels: 1.3180 1.3155 1.3110

Resistance levels: 1.3250 1.3295 1.3340

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.