GBP/USD is offered after choppy price action to test 1.26 on Tuesday. While below the 1.26 level, the cable remains vulnerable, economists at Scotiabank report.Initial support aligns at the 1.25 figure zone
“GBP price action has been choppy since the start of the month but generally confined to 1.26 on the top and the high 1.24s on the bottom – aside from yesterday’s low of 1.2431.”
“The pound plumbing new lows since its May rally yesterday and lengthy sideways trading point to weakness ahead – especially if the GBP again fails at making a push above 1.26.” “Support is the 1.25 figure zone followed ~1.2480 and yesterday’s low.”
EUR/USD rises toward 1.0750 as dollar loses strength
EUR/USD has regained its traction in the early American session and climbed toward 1.0750. The greenback is having a difficult time finding demand on Wednesday as investors gear up for the European Central Bank’s policy announcements on Thursday.
USD/JPY hovers around 134.00, clings to strong daily gains
USD/JPY trades around 134.00 after hitting a 20-year high of 134.48 earlier in the day. The benchmark 10-year US T-bond yield stands around 3.01% in the American session, allowing the pair to maintain the upward pressure.
Gold benefiting from temporal dollar’s weakness
Gold is up for a second consecutive day. Financial markets are all about concerns related to inflation, growth, and central banks’ quantitative tightening. Market participants fear that the aggressive measures taken by policymakers will end up triggering a recession.