GBP/USD turns positive around 1.2200

Pablo Piovano FXStreet

The British pound has now reverted the earlier pullback and is now pushing GBP/USD to return to the 1.2200 neighbourhood.

GBP/USD firmer on USD-selling

The pair is advancing for the second straight session so far today, as the strong rally in the greenback seems to have run of legs today.

Despite the sentiment around GBP remains fragile, recent comments by PM Theresa May have mitigated concerns over the likeliness of the so-called ‘hard Brexit’ scenario, helping spot to rebound from recent lows in the 1.2080 region.

On the US data front, Initial Claims have bettered estimates at 246K WoW, taking the 4-Week Average down to 249.25K from 252.75K. Still in the US, Export Prices rose 0.3% MoM in September and Import Prices rose 0.1% MoM.

Looking to Friday’s docket in the UK, the BoE will host Future Forum 2016, where Governor M.Carney is due to speak along with B.Broadbent, J.Cunliffe, M.Shafik and other members. In addition, MPC K.Forbes will be a panellist at the National Bank of Poland 6^th Annual Conference in Warsaw.

GBP/USD levels to consider

As of writing the pair is up 0.03% at 1.2198 facing the next resistance at 1.2761 (high pre-‘flash crash’ Oct.7) followed by 1.2765 (20-day sma) and then 1.2886 (near term resistance line). On the other hand, a break below 1.2086 (low Oct.11) would expose 1.1450 (low post-‘flash crash’ Oct.7).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

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?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.