GBP/USD Forecast: Support at risk as Brexit begins biting, greenback makes a comeback
Get ready for a no-trade-deal Brexit – that is the message conveyed by the Bank of England to commercial banks as negotiations between the UK and the EU are not going anywhere fast. Hopes for mutual concessions on fisheries and trade came and went – and so did Brussels' hopes for an intervention by Prime Minister Boris Johnson.
The lack of progress in the current round of negotiations on future relations – due to end tomorrow – mean the risk of the UK falling to World Trade Organization rules is growing, and that is sending sterling lower. Read More...
GBP/USD Forecast: Losing bullish momentum amid Brexit jitters, escalating US-China tensions
The GBP/USD pair gained some follow-through traction for the fifth consecutive session on Wednesday and shot to fresh one-month tops. The upbeat market mood remained well supported by growing hopes for global economic recovery and continued denting the US dollar's relative safe-haven, which, in turn, was seen as one of the key factors driving the pair higher. On the economic data front, the final version of the UK Services PMI was revised higher to 29.0 for May as against 27.8 estimated earlier, albeit did little to provide any meaningful impetus to the British pound.
From the US, the ADP report showed that private-sector employment in the US declined by 2.76 million in May as compared to consensus estimates pointing to drop of 9 million. Adding to this, the US ISM Non-Manufacturing PMI came in at 45.4 for May as compared to 44.0 anticipated but once again failed impress the USD bulls. Despite the positive factors, the pair struggled to find acceptance above the 1.2600 mark and witnessed some intraday profit-taking amid rising odds of hard Brexit. Read More...
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GBP/USD flirts with session lows, risks breaking below 1.2500 mark
The GBP/USD pair refreshed daily lows during the early European session, with bears now awaiting some follow-through weakness below the key 1.2500 psychological mark.
The pair struggled to find acceptance above the 1.2600 mark on Wednesday and witnessed a modest intraday pullback from over one-month tops. The retracement slide extended through the early part of Thursday's trading action and was sponsored by a combination of factors. Read More...
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