- US Dollar falls while commodity currencies outperform.
- Equity prices rise in Wall Street, head for a slide in Europe.
- GBP/USD with positive momentum, tests relevant resistance.
The GBP/USD is up on Thursday for the second day in a row but the upside remains limited by the 1.2230 area. Risk appetite and a weaker dollar are supporting the pair.
In Wall Street, the Dow Jones is up by 0.72% while the Nasdaq gains by 1.10%. European indexes are in negative, with the FTSE 100 down by 0.07%. The US Dollar Index is falling by 0.25%. The best performers in FX are commodity currencies as Gold, Silver and oil rise sharply.
Economic data released on Thursday showed US Initial Jobless Claims rose as expected to 230K in the week ended December 3 while Continuing Claims increased by 62K in the week of November 26 to 1.671 million, above the 1.575 million of market consensus, hitting the highest level since early February.
On Friday, China will report the Consumer Price Index for November that is expected to show an increase of 1% (annual). The Bank of England will release the Consumer Inflation Expectations report. In the US are due the Producer Price Index and the University of Michigan Consumer Sentiment report.
GBP/USD short-term outlook
The GBP/USD pair is trading at daily highs, challenging the 1.2230 zone. If it consolidates above, the positive momentum will favor more gains, targeting 1.2260. Above, attention would turn to 1.2290/1.2300.
A failure to break 1.2230 would keep the pair sideways between that area and 1.2150. A slide below would expose the weekly low at 1.2104.
Technical levels
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.
Recommended content
Editors’ Picks
EUR/USD: Euro recovers ground but not re-attracting bulls yet Premium
The EUR/USD rose on Monday toward the 1.0800 area, recovering some of Friday’s slide, supported by an improvement in market sentiment, amid easing concerns on the banking sector.
GBP/USD closes in on 1.2300 as mood improves
GBP/USD has preserved its bullish momentum and advanced to the 1.2300 area in the second half of the day on Monday. The risk positive market atmosphere makes it difficult for the US Dollar to stay resilient against its rivals and fuels the pair's daily rally. Eyes on BOE Governor Bailey's speech.
Gold: XAU/USD pared losses and consolidates around $1,950.00 Premium
Spot gold trades in the $1,950 price zone, sharply down on Monday as investors move away from safe-haven assets. The sentiment is positive at the start of the week amid easing concerns related to a global banking crisis.
MicroStrategy buys $150 million worth of Bitcoin as institutional interest soars to eight-month high
Bitcoin has been noting increasing institutional interest for the last few days as whale movement on the network grew.
US Consumer Confidence Preview: No good news for Americans Premium
The United States will publish the March Conference Board Consumer Confidence index, and market players anticipate it has contracted to 101 from 102.9 in February.