Sterling outperforms on the day – the backdrop remains challenging, however, economists at Scotiabank report.The broader technical tone looks negative
“Chancellor Hunt has his work cut out to restore investor faith in government finances.”
“Cable looks to have formed a bearish ‘evening star’ candle on the daily chart, reflecting a strong rejection of the long-term bear trend resistance at 1.1535 which the pound tested earlier this week.”
“Unless spot can – quickly – regain the low/mid.1.15s and advance, deeper losses seem more likely to resume.”
EURUSD falls toward 0.9950 ahead of US CPI data
EURUSD has extended its daily slide toward 0.9950 during the European trading hours. Ahead of the October Consumer Price Index data from the US, the cautious market mood helps the US Dollar preserve its strength and forces the pair to stay on the back foot.
GBPUSD fluctuates in a tight range below 1.1400
GBPUSD has gone into a consolidation phase after having declined below 1.1400 in the European session. The risk-averse market atmosphere helps the US Dollar holds its ground as the focus shifts to the US October inflation data.
Gold holds above $1,700 as US yields stay quiet
Gold price continues to move sideways slightly above $1,700 on Thursday. The benchmark 10-year US Treasury bond yield stays flat above 4.1% ahead of US CPI data, making it difficult for XAUUSD to make a decisive move in either direction.