GBP/USD: It may be a bumpy ride for the Pound this week – Scotiabank

FXStreet Insights Team FXStreet

GBP/USD drifts lower. Economists at Scotiabank analyze the pair’s outlook.

Short-term charts lean bearish

There is a raft of key data reports due in the coming days which will likely shape the Pound’s near-term direction. Employment data are due on Tuesday but CPI (expected to firm a little) Wednesday and GDP (expected to weaken) Thursday will drive GBP sentiment. It may be a bumpy ride for the Pound this week.

Short-term charts lean bearish but the Pound’s solid move off last week’s low and relatively firm close suggest some resilience on the weekly chart.

Short-term resistance is 1.2650. Support is 1.2570/1.2575. Key support is 1.2520.

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FXStreet Insights Team

FXStreet

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EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.