Pound Sterling Price News and Forecast: GBP/USD steady around 1.30 handle as attention stays with coronavirus

FXStreet Team FXStreet

GBP/USD steady around 1.30 handle as attention stays with coronavirus

GBP/USD has held its own in the face of dollar weakness with the DXY falling back below the 99 handle on Tuesday. The coronavirus is taking up the headlines until the UK and EU trade negotiations and UK budget will take the spotlight next month. At the time of writing, GBP/USD is trading at 1.2995 between 1.2989 and 1.3005 in Tokyo's opening hour on Wednesday.

The markets are hugely distracted from the matter at hand with respect to Brexit, with media headlines taking a rain check from reporting on the matter ahead of the formal negotiation between the EU and UK kick off in March. The coronavirus has taken up the spotlight with the spread of the virus hitting all corners of the world.

GBP/USD Forecast: Next round of sellers aligned around 1.3060

The GBP/USD pair reached a daily high of 1.3017 on the back of the dollar’s weakness and despite soft UK figures. The February UK CBI Distributive Trade Survey on realized sales showed a modest 1.0% increase against the 4.0% expected. The report showed that sales remained flat and orders fell in the year to February, although there has been an improvement in investment plans when compared to the previous quarter.

The EU released the Political Declaration, a document set to be the base of the upcoming trade relationship with the UK. The kingdom will release its declaration next Thursday, although Downing Street responded to the EU, claiming that the UK deserves the same respect to autonomy as other major economies such as Canada and Japan, and mentioned that the EU doesn’t demand a level playing field when dealing with the US. The UK won’t release macroeconomic figures this Wednesday.

EUR/USD recovers above 1.1600 as focus shifts to US NFP

EUR/USD recovers ground above 1.1600 in Friday's European trading. The pair's uptick is sponsored by a profit-taking pullback in the US Dollar, as traders reposition ahead of the critical US Nonfarm Payrolls data. Meanwhile, the Middle East conflict and higher oil prices could keep the recovery in check.

GBP/USD rebounds toward 1.3400 in countdown to US NFP

GBP/USD is rebounding toward 1.3400 in the European session on Friday. A modest improvement in risk sentiment and a broad-based US Dollar retreat help the pair recover its weekly losses. The focus now remains on the US NFP data and Middle East headlines for fresh trading incentives.

Gold advances on increased safe-haven demand

Gold price recovers its recent losses from the previous session. The yellow metal advances as the broader precious metals market rebounds on safe-haven demand. However, the yellow metal is on track for its first weekly decline in five weeks as escalating Middle East tensions push oil prices higher, fueling inflation concerns and reducing bets on Federal Reserve rate cuts.

US Nonfarm Payrolls expected to show hiring moderated in February

The United States Bureau of Labor Statistics will release the Nonfarm Payrolls data for February at 13:30 GMT. Volatility around the US Dollar will likely ramp up on the employment report, with investors looking for fresh insights on the US Federal Reserve’s path forward on interest rates, especially after the crisis in the Middle East revived concerns over rising inflation.

The market compass is pointing at a barrel of Oil

The Asian open is arriving with equities leaning the wrong way, and the reason is not complicated. The market’s compass needle has snapped firmly toward crude. In this tape, oil is not just another input price; it is the gravitational center around which every asset class is orbiting.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple at risk as US-Iran war extends

Bitcoin, Ethereum, and Ripple trade cautiously at press time on Friday, close to key support levels after a roughly 2% pullback the previous day. Bitcoin holds above $71,000, Ethereum at $2,000, and XRP continues to consolidate in a sideways range.