GBP/USD breaks above 1.2000 as US dollar drops further.

Risk sentiment favors the pound on Monday.Busy week in the UK between politics and key data.Cable faces next resistance levels at 1.2050 and 1.2065.

The GBP/USD broke above 1.1990 during the American session and jumped to 1.2033, reaching the highest level since July 8. It is hovering around 1.2010/15, up 150 pips for the day, boosted by a weaker US dollar.

Improvement in risk sentiment

Equity prices ended higher in Europe and the Dow Jones gains 0.54% on Monday. The latest round of US economic data and signs the Federal Reserve will hike rates by “just” 75 basis points contribute to improving market sentiment. Investors are also looking at the first corporate results for the second quarter.

In the UK, the political drama continues. The final candidates to become Prime Minister should be clear by Thursday. Besides politics, UK economic data will be key during the week. On Tuesday, labor market is due. Later during the week, CPI, PMI and retail sales will be released. 

Looking at 1.2050

The very short term bias is bullish for GBP/USD. Although the pair is facing a strong resistance ahead around 1.2050 and also at 1.2065. So a firm break above is needed in order to clear the way to more gains. While below the mentioned area, the upside would be seen as limited. The immediate support might be seen at 1.1950 followed by 1.1920 and 1.1850.

EURUSD edges lower after facing resistance at 1.0200

EUR/USD has extended its daily rally toward 1.0200 in the American trading hours on Monday but failed to break above that level. In the risk-positive market environment, however, the dollar struggles to find demand and the pair remains on track to post strong daily gains.


GBP/USD clings to daily gains near 1.2000

GBP/USD has climbed to its highest level in a week above 1.2000 but erased a small portion of its daily gains in the American session. As risk flows continue to dominate the financial markets, the greenback stays on the back foot on Monday.


Gold bulls hesitate despite a better market mood

Gold trades flat for the day. The metal advanced to $1,723.81 earlier in the day as the dollar struggles to find buyers. A better market mood pushed the greenback lower at the beginning of the week as stocks surged, backed mainly by encouraging earnings reports and expectations that the Fed will refrain from tightening more than anticipated.

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