GBP/USD struggling to get a grip on 1.42 ahead of Carney's speech

Sterling is trapped in consolidation, lacking motivation in either direction ahead of BoE speeches.
Middle East concerns are clamping down on market sentiment that started the week with a kick upwards.

Joshua Gibson FXStreet

The GBP/USD is trapped within Wednesday's range, testing around 1.4180 ahead of the European markets.

The Sterling was unable to derive any significant momentum on Wednesday, pushing into 1.4220 but ultimately couldn't capture new ground, falling back below the 1.4200 handle as growing concerns over the Syria crisis continue to push the Middle East instability to the forefront of markets.

UK's PM May to ask Cabinet meeting about Syria strikes - Sky News

The economic calendar for the GBP today sees a cluster of speeches, kicking off with Monetary Policy Committee (MPC) Member Broadbent, who will be taking the podium early at 06:30 GMT, followed by the Bank of England (BoE) Credit Conditions Survey results at 08:30. After that will be the main event, a scheduled speech from the BoE's head, Mark Carney. Carney will be speaking later in the day at 19:00 GMT, where he will be delivering the closing speech for the Public Policy Forum's growth summit, in Toronto, Canada.

The US side of the economic calendar may spark some movement, with US Continuing and Initial Jobless Claims dropping at 12:30 GMT. Continuing Claims are expected to bump slightly from 1.808 million to 1.848 million, while Initial Claims are forecast to decrease, from 242 thousand to 230 thousand.

The UK economy has been middling as of late, and the growth that the UK has seen is being attributed to strong global conditions rather than domestic demand, as noted by the BCC quarterly survey here.

GBP/USD Levels to consider

As FXStreet's Chief Analyst Valeria Bednarik noted earlier, "the technical outlook is still positive, despite the rally seems to have lost momentum, as the pair is in a consolidative stage after recovering roughly 230 pips from last week's low. In the 4 hours chart, the 20 SMA has partially lost its bullish strength but continues heading north below the current level, while technical indicators ease from overbought territory, rather reflecting the ongoing retracement than suggesting an upcoming slide. A break through 1.4244, the high established last March, would favor a rally up to 1.4345, the highest post-Brexit referendum, while the bullish potential will be neutralized on a break below 1.4115."

Support levels: 1.4150 1.4115 1.4080

Resistance levels: 1.4200 1.4245 1.4290

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.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.