GBP/USD bulls step up the pace in the hint for the 1.3160s. The US dollar bleeds as the focus remains on a breakthrough in peace talks Russia/ Ukraine.GBP/USD is trading around 1.3110 and near the highs of the day as the US dollar slides. Sterling underperformed, returning to around 1.3100, net flat overnight, although the pair is picking up a bid in Asian markets ahead of the European open as Asia shares joined a global rally on Wednesday.
The hope for a negotiated end to the Ukraine conflict is keeping spirits alive and adding riskier currencies, such as the pound. The bond markets have signalled concern that aggressive rate hikes could damage the US economy after 10-year yields briefly dipped below two-year rates, but markets are shrugging this off.
The focus is on Russia and Ukraine whereby the Russians have promised to scale down military operations around Ukraine’s capital and north, while Kyiv proposed Ukraine join the EU while adopting neutral status by not joining NATO. The peace talks are taking place in an Istanbul palace more than a month into the largest attack on a European nation since World War II.
”Talks successful enough for a possible meeting between Putin and Zelensky, says Ukrainian presidential advisor Mykhailo Podolyak. “We have documents prepared now which allow the presidents to meet on a bilateral basis,” he said.
European currencies have generally been under pressure vs. the USD in the spot market given concerns about energy security and/or the economic impact of higher prices for gas and oil. However, the energy sector has tailed off in the hopes of a breakthrough in peace talks and a potential ceasefire. Net short GBP positions increased noticeably for a third week as concerns rise as to the cost of living crisis in the UK, so any signs of relief there are bound to support the pound in the spot market as inflation concerns abate.
EUR/USD advances beyond 1.1150 despite mixed EU sentiment data.EUR/USD has extended recovery beyond 1.1150 early Wednesday amid broad-based dollar weakness even though the data from the euro area showed that consumer confidence weakened in March. Investors await the German inflation report and the private sector employment data from the US.
GBP/USD rises to test 1.3150 as US dollar keeps falling.GBP/USD is approaching 1.3150, as the US dollar extends its downfall. The risk-on impulse, retreating US bond yields continue weighing on the safe-haven greenback. Cautious remarks from BOE’s Broadbent fail to deter GBP bulls. US ADP and GDP data are awaited.
Gold recovers further from two-month low, upside seems limited.Gold gained some positive traction on Wednesday, though lacked follow-through buying. The USD languished near a one-week low amid sliding US bond yields and extended support.
Altseason to begin in full force.Bitcoin price action for the last two weeks has caused it to flip some crucial hurdles. This move is likely to translate into another phase of consolidation, allowing Ethereum, Ripple and other altcoins to explode.